Grupo IRSA, S.A. de C. V.

completed

September 8, 1995Environmental Review Summary (ERS)Project Name Mexico-Grupo Irsa, S.A. de C.V. Region Latin America and Caribbean Sector Chemicals and Petrochemicals Project No. 007251 1. Grupo IRSA, S.A. de C.V. (GIRSA) is a diversified chemical branch of the Mexican group DESC. GIRSA has pursued an aggressive restructuring program that has included closing of some plants, centralization of production, and reduction of costs. This project involves a five year program to modernize and streamline the operation which currently consists of 19 chemical production plants and 5 R & D centers. Major sub-projects of the restructuring program includes the expansion of the Altamira INSA synthetic rubber plant, the modernization of the Altamira carbon black plant, the construction of a modern consumer products plant at Salamanca as well as the closure of the Salamanca synthetic rubber plant and carbon black plant, the closure of the Santa Clara consumer products plant, and the partial closure of the Vallejo consumer products plant.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 design and information submitted by the project sponsor to obtain permits, environmental and legal reviews submitted by the sponsor, and the technical and environmental appraisal and site reviews completed by IFC’s staff. The following potential environmental, health and safety impacts of GIRSA’s modernization projects were analyzed:. air emissions;. treatment of process wastewater;. disposal of liquid residues and solid waste;. spill prevention and control of contaminated wastewater;. environmental impact of site closures;. fire prevention and emergency response; and. control of employee exposure to chemical substances.The information provided about how these potential impacts would be addressed in the operation of the modernized facilities and new facility is summarized in the paragraphs that follow.3. For the existing facilities, which are modernized, GIRSA has an environmental Corrective Action Plan (CAP), to ensure current compliance with the Mexican governmental requirements. The CAP includes closure plans for facilities that will be eliminated when the restructuring is complete. For the new plant, consumer products in Salamanca, the design complies with Mexican governmental requirements, consistent with World Bank guidelines.4. GIRSA has an Environmental, Health and Safety group designated CASH (Control Ambiental, Seguridad e Higiene) which is doing an outstanding job of identifying problems, establishing corrective and proactive action programs, training personnel, and monitoring performances.Air Emissions5. Modernization of the Altamira carbon black plant includes post-combustion of the tail gas from the chemical reactors and heat recovery. The post-combustion of the tail gas for the heat recovery complies with the Norma Oficial Mexicana NOM-022-SSA1-1993, Salud Ambiental. Criterio para evaluar la calidad del aire ambiente con respecto al bióxido de azufre (SO2). Valor normado para la concentración de bióxido de azufre (SO2) en el aire ambiente como medida de protección a la salud de la población published December 23, 1994 in the Diario Oficial de la Federación (Mexican Federal Register). The closure of the carbon black plant at Salamanca significantly decreased emissions of air pollutants to the atmosphere.Wastewater Treatment6. Several projects are under development for installation and start-up during 1996. There are two major ones. The first one consists in the modifications that will be made in the wastewater treatment equipment at the Altamira carbon black plant. The second one concerns the HUMEX synthetic rubber plant at Altamira, that will have a new wastewater treatment plant installed that will meet with the specific guidelines established by the Comision Nacional de Agua (CNA). All GIRSA facilities will monitor performance of their wastewater treatment facilities and upgrade them, if necessary, to ensure adequate treatment of the effluents.Solid and Liquid Waste Disposal7. GIRSA recycles or reclaims materials where possible. Those materials that cannot be reused or recycled are disposed of according to local regulations.Soil and Water Contamination8. All chemical and fuel storage tanks, transfer systems, and product storage and handling systems will be operated in a manner to prevent contamination of soil, groundwater and surface waters.Impacts of Site Closures9. GIRSA personnel has implemented closure plans for each facility closed and will establish closure plans for any additional facilities to be closed during the expansion and modernization program. These plans address health and safety, waste minimization, spill prevention and remedial actions to be performed at the various sites in accordance with local requirements. Solid wastes, liquid wastes, and hazardous wastes generated during closure will be disposed of in accordance with local requirements.Fire Prevention and Emergency Response10. According to the regulations of the Secretaria de Desarrollo Urbano y Ecologia (SEDESOL), particularly programs such as environmental audits and risks analysis studies, GIRSA will upgrade the storage areas for flammable, toxic, or explosive materials, to withstand potential risks from accidents, fire, natural hazards, or human intrusion. The Altamira carbon black facility has a satisfactory program in place to address safety, fire prevention, fire protection, and hazard recognition and control. The Altamira HUMEX synthetic rubber plant needs to make significant improvement in its fire protection and control, especially at the material storage facilities. Improvements will be made according to the recommendations from SEDESOL risk’s analysis studies.11. The construction of a butadiene pipeline coming from the sea terminal to the Altamira INSA synthetic rubber plant will reduce transportation hazards as well as eliminate air pollutant emissions from trucks currently transporting the butadiene. Construction of the butadiene pipeline has begun and the line should be operational by late 1995.Control of Employee Exposure to Chemical Substances12. The GIRSA EH&S corporate group, CASH, ensures all facilities monitor the work place and train personnel in the procedures for the use of personal protective equipment.Summary13. IFC will monitor GIRSA’s environmental, health and safety performance during the life of the project by evaluating monitoring reports submitted annually to IFC by the project sponsor for all facilities, including the status of the CAP and additional actions that may be required to ensure the CAP is fully implemented, and by conducting periodic site reviews during project supervision.14. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that the GIRSA modernization project is being designed based on Mexican governmental requirements and World Bank guidelines.This ERS was mistakenly submitted to the PIC on 9/27/95 as 004154. It was revised on 6/9/97 using correct project number (7251) per instructions of Ismail Samji.