FV S.A.

completed

Environmental Review Summary (ERS)Project Name ARGENTINA: FV S.A.Region Latin AmericaSector ManufacturingProject No. 008319 October 6, 19971. This project involves a modernization and expansion of FV, Argentina’s largest producer of brass and metal sanitaryware fixtures for kitchens and bathrooms. FV employs 1,250 personnel and operates two manufacturing plants in Buenos Aires Province. The main plant in Villa Rosa has 60,000 m2 of covered space and manufactures all metallic components. The second plant, in Florida, has been in operation since 1921 and covers 8,000 m2. It houses the main corporate offices as well as some manufacturing capacity. The project will include expansion of production by 50%, from 15 t/day to 23 t/day, by eliminating bottlenecks, reducing operating costs, and improving the quality of the company’s product lines; modernizing production technology; and renovating plant infrastructure to increase efficiency and improve safety and security. New equipment and modernizations conducted as part of the project will be designed to meet World Bank guidelines. FV’s existing operations substantially comply with local requirements and World Bank guidelines. FV has prepared a Corrective Action Plan (CAP) and schedule, based on information developed by IFC and the company, to bring its operations into full compliance.2. This is a category B project according to IFC’s environmental review procedure because specific impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of this project consisted of appraising technical and environmental information submitted by the project sponsor, and the technical appraisal and site review completed by IFC’s Technical and Environment Department staff. The following potential environmental, health and safety impacts of the project were analyzed:· air emissions;· liquid effluents;· solid and hazardous waste handling and disposal; and· worker exposure to high temperatures, fumes, noise and dust.The sponsor has presented plans to address these issues and demonstrate the proposed project will comply with applicable governmental and World Bank requirements. The information provided about how these potential impacts are addressed in the development of the project is summarized in the paragraphs that follow.3. Air emissions from the Villa Rosa plant air pollutants include fumes from induction furnaces, electroplating baths, and the electrostatic spray chambers. Each piece of equipment is independently vented and control measures are in place to handle flue gases and fumes and collect and recycle metallic dust. Emissions at the Villa Rosa plant were recently tested and found to comply with local requirements with the exception of chromium in the finishing coat section exhaust. As part of the CAP, FV will make necessary changes in the process to bring these emissions into compliance by the end of 1998. New equipment installed as part of the project will have appropriate control technology; for example, a gas treatment system will be provided for the plastics electroplating operation. At the Florida plant a heat treating system is the principal air emissions source; these emissions meet World Bank guidelines. Other emissions at the Florida plant are minor sources, and were recently tested and found to comply with local requirements.4. A new treatment plant for process effluent is included in the project for the Villa Rosa plant. The plant’s existing discharge contains treated process effluent and sewage. At project completion, all existing and new discharges will meet World Bank guidelines. The Florida plant has no process effluents, and sanitary sewage is discharged to the municipal (Aguas Argentinas) system.5. FV minimizes and recycles solid wastes where possible. The company contracts the handling and disposal of solid and hazardous waste at both plants to a specialty contractor. There is no equipment or processes containing polychlorinated biphenyls (PCBs) in use at either plant. Some central cooling systems use chlorofluorocarbons (CFCs). As agreed in the CAP, these will be phased out during normal equipment replacement, and no later than December 31, 1998. FV has also agreed to upgrade secondary containment for its liquids storage at the Villa Rosa plant by June 30, 1998.6. FV has a full time safety and health staff, and adequate measures are currently in place to provide safety equipment to all workers. The level of personal protective equipment use needs to be improved, especially eye protection. As part of the CAP, FV has enforced the use of eye protection. FV is also using the investment program as an opportunity to strengthen its overall training procedures for environment, health and safety matters, including emergency response procedures. Existing employees will receive emergency response training by December 31, 1997 and annually thereafter. New staff will be trained at the time of employment, then annually. The company will also replace existing Halon-type fire extinguishers at Villa Rosa by December 31, 1997, and upgrade equipment grounding for safety at both plants by July 31, 1998.7. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that, with the implementation of the CAP, the proposed project is being designed to meet Government of Argentina requirements, and World Bank policies, and environmental, health and safety guidelines.8. IFC will monitor FV’s progress of implementing the CAP as well as ongoing compliance with World Bank policies and guidelines during the life of the project by evaluating monitoring reports submitted annually to IFC by the sponsor and by conducting periodic site reviews during project supervision.L:\CLAD2\ARGENTIN\FV\DEC-BRD\FVERS.DOC10/07/97 9:21 AM