Gumussuyu Carpets

completed

Environmental Review Summary (ERS)Project Name: TURKEY: GumussuyuRegion: Central and Southern EuropeSector: TextilesProject No: 0091821. Gumussuyu is the leading carpet manufacturer in Turkey with US$63.4 million in sales in 1998. The company started production in 1952 as a semi-worsted spinning firm and later expanded into the production of blankets. In 1964 Gumussuyu ceased blanket production and started making woven Wilton carpets. The company still operates the original yarn production unit, although it has been modernized. This unit provides wool and wool blend yarns to the production line which consists of around 50 Wilton weaving looms. In addition, wall-to-wall carpet is produced on a modern needlepunched carpet line and five tufting machines. The project involves investment to (i) modernize and increase annual woven area carpet capacity from 5 million m2 to 6.2 million m2, and broadloom (wall-to-wall) carpet capacity from 10 to 11 million m2; (ii) establish a franchise operation to market floor coverings, and (iii) install a computer aided order-processing, production control and monitoring system. The plants are located near Cerkezkoy township, about 100 km from Istanbul. The project cost is estimated at US$31 million.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 the project consisted of appraising technical and environmental information submitted by the project sponsor by IFC’s Technical and Environment staff. The following potential environmental, health and safety impacts of the project were analyzed:· air emissions from manufacturing processes and power generation;· dyeing and sewage effluent treatment and disposal;· solid and liquid waste disposal;· fire prevention and emergency response; and· occupational health & safety.The sponsor has presented information that demonstrates that they are aware of these issues and have stated that the proposed project will comply with applicable local, national and World Bank requirements. The information about how these potential impacts are addressed by Gumussuyu is summarized in the paragraphs that follow.3. The existing plant and site for the new plant are both located in an industrial zone which has 47 other manufacturing plants (of which around 90% are textile plants). There is no evidence of sensitive areas near to either site. The modernization and expansion program will be conducted within existing plant boundaries and on a new site. The company has reported to have no problem with contaminated land from present and past operations at either site. 4. There is an air pollution control system of unspecified type in operation for the chimney of the boiler plant. The emissions are stated to be within national and local emission limits and the levels quoted are within World Bank guideline levels. 5. The industrial wastewater and sewage (approx. 275 m3/day) from the Gumussuyu factory is piped 4 kilometers in an underground pipeline to a municipal treatment facility. This serves a town of 50,000 plus the effluent from all the factories in the industrial zone. The treatment facility was designed by Thames Water of the UK and has a capacity of 35,000 m3/day although currently handling about 21,000 m3/day. Effluent from the new facility (quantity unspecified) will also be handled by this plant. Gumussuyu has provided data on the water discharge quality from the treatment plant which confirms that it meets appropriate World Bank effluent standards. Gumussuyu have plans to construct an effluent pre-treatment plant in each of the existing and new factories to reduce the pollution load on the central treatment plant. The costs of these plants are included in the project investment plan.6. The main solid waste products are production waste (yarn, fibre, carpet scrap), canteen waste and sludge. Production waste is baled and sold whilst other wastes are removed by the municipality. 7. The only hazardous materials identified by Gumussuyu as being used are LPG and Natural Gas and the company states that measures for their safe use are contained within its management system.8. Health and Safety issues identified by the company are noise, chemical handling and storage and general fire safety. Personal protective equipment is issued (safety shoes, gloves, overalls, safety glasses etc) and safety training is given to approximately 700 persons annually. The sponsor has indicated that they will comply with applicable World Bank Health & Safety standards.9. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that Gumussuyu’s proposed project is being designed to meet World Bank environmental, health and safety policies and guidelines and host country requirements.10. IFC will monitor ongoing compliance with World Bank environmental, health and safety policies and guidelines during the lifetime of the project by evaluating reports submitted annually to IFC by Gumussuyu and by conducting periodic supervision.