Iljin Industries Co., Ltd.

completed

- 2 - International Finance CorporationA Member of the World Bank GroupInternational Finance CorporationA Member of the World Bank GroupEnvironmental Review Summary (ERS)Project Name: South Korea: Iljin Industries Region: AsiaSector: ManufacturingProject No.: 0090771. This project involves the completion of the investment plan for a plant that began manufacturing power cables in 1997. Specifically, the plan calls for the addition of a second vertical type continuous vulcanizing tower for curing high voltage transmission cables. Total project cost is US$20 million of which IFC will provide a US$15 million loan and US$5 million in equity financing. 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.2. Key environmental, occupational health and safety issues that are of potential concern in this project include:· air emissions from furnaces, generators and other processing facilities;· process and sanitary wastewater treatment and disposal;· hazardous and solid waste management;· hazardous materials storage and handling;· fire protection and emergency response; and· general workplace health and safety and worker training.The information provided about how these potential impacts are addressed in the development of the project is summarized in the paragraphs that follow.3. The project involves the expansion of facilities within the existing site boundary and no additional land is required. Former land use was agriculture and it is not anticipated that there are any contaminated land issues.4. Air emissions from this facility will be negligible. Light oil for boilers is stored in an underground tank connected directly to the boilers, and emissions for particulate matter, sulfur dioxide and nitrous oxides will fall within World Bank guidelines (50mg/Nm3, 0.2t/d/MWe and 360mg/Nm3 respectively). Kerosene has been previously used for heating but will be replaced in the near future with natural gas. Solvents used for cable printing are stored separately and access and use is controlled. Volumes of solvent used are small. The facility does not use ozone-depleting substances in production activities.5. Industrial water is recycled in heat exchangers. Sanitary effluent is treated in a septic tank before discharge to sewer. Septic discharges fall within prescribed national limits and are within World Bank guideline levels for BOD and suspended solids. 6. There are existing management systems for the use, storage and disposal of hazardous wastes and material handling is undertaken in a rational and planned manner. There is a committee for Health and Safety which meets on a regular basis with direct links to senior management. An emergency response plan has been prepared and training is provided to all staff.7. The majority of solid waste (PVC, polyethylene, copper, aluminum and domestic waste) is recycled by professional companies under contract to the sponsor. Other wastes are disposed of in licensed landfill sites.8. The facility has an environmental policy statement which has been endorsed by senior management and suitably qualified environmental supervisors have been appointed to monitor environment and health and safety issues relating to the site.9. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that the proposed project will meet World Bank environmental, health and safety policies and guidelines and South Korean environmental, safety, and health 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 monitoring reports submitted annually to IFC by the sponsor and by conducting periodic site reviews during project supervision. L:\wpeu\Mark\Korea\Iljin-ers.docJuly 1, 1998 4:32 PM