Modern Aluminum Industries Co.

completed

INTERNATIONAL FINANCE CORPORATIONA Member of the World Bank GroupINTERNATIONAL FINANCE CORPORATIONA Member of the World Bank GroupEnvironmental Review Summary (ERS)Project Name Jordan-Modern Aluminum Industries Company (MODAL) Region Middle EastSector ManufacturingProject No. 007209 1. Modern Aluminum Industries Company (MODAL) is constructing a 6,000 mtpa aluminum extrusion plant to produce aluminum profiles for architectural and light-industrial use. The extruded aluminum profiles will be sold directly without any treatment, or anodized and electro-colored or coated prior to shipment. The principal products are expected to be door and window frames. The major raw material for the plant is aluminum logs or billets, which will be imported. Electrical power, up to 7.5 MW, will be supplied by JEPCO (Jordanian Electrical Power Company) from their major thermal generation plant in Aqaba. An on-site artesian well will have sufficient capacity (90 m3/hr), based on a United Nations geologist’s report, to provide an adequate supply of water for the plant.2. The plant is being built on a 20,000 m2 site in Eastern Arinbeh village, located about 45 km south of Amman. The plant is located in an open area which has been classified “Industrial” and several other projects have been started in this new industrial estate. Longer-term, the plant will be surrounded by other industrial facilities and buffered from potential residential areas. The plant will employ up to 150 people and is expected to startup during the second quarter of 1996.3. 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 wastes;· use of water resources and land use;· general plant safety;· equipment safeguarding; and· employee exposure to heat, noise and chemical substances.The sponsor has presented plans to address these issues and to comply with applicable governmental and World Bank requirements. The information provided about how these potential impacts are addressed in the development of the proposed project is summarized in the paragraphs that follow.4. The aluminum billets will be heated in an electrical furnace, then extruded in a press to produce the desired profiles. An electrical resistance furnace will be used to harden the profiles. Since the project’s two main furnaces are electrically heated, there will be no significant air emissions from these initial process steps. Surface treatment and coating of the profiles will involve anodizing and electro-coloring, and in some cases also be spray painted; only Chrome-free materials and polymer-based paints will be used in the anodizing and coating systems. MODAL will be the first company in the Middle East to use a Chromium-free process for painting aluminum profiles.5. Process fumes generated during the finishing operations will be removed by extraction devices and neutralized, using alkaline and acidic scrubbers. These scrubbers will be provided with static drip traps to control mist emissions. The performance design for these pollution control devices is based on the German standard (T.A. Luft), requiring 99.5 percent retention of acid or alkaline droplets.6. All process wastewater and domestic sewage generated at the plant will receive physical, chemical and biological treatment. The treated effluents will meet the applicable Jordan “202” standard as well as the World Bank guidelines, including pH of 6-9, BOD5 of <50 mg/l, Heavy Metals of <10 mg/l, and Oil and Grease of <5 mg/l. The primary effluent from the wastewater treatment plant, about 15 m3/hr, is also expected to meet Jordanian irrigation-quality requirements to permit reuse by local farmers.7. The plant has been designed to minimize the aluminum scrap rate to under 17 percent. Initially, scrap aluminum will be sold for recycling. In the future, a remelting furnace is planned to be installed that will be used to directly recycle recovered aluminum scrap to the process. Since the solid sludge from the wastewater treatment plant (about 0.7 m3/day) will contain useful Aluminum and Calcium compounds, but not Chromium compounds, it will be sold to a local cement plant. All other wastes will be transported, treated and disposed of in accordance with local regulations.8. The project will not have any significant impacts on natural resources and ecology, nor involve cultural properties or resettlement of people. MODAL will institute measures to prevent chemical spills, including providing containment dikes for the chemical process baths and storage tanks.9. MODAL management will establish an Environmental, Health and Safety (EH&S) policy and program, aimed at ensuring that the plant operations are both safe and environmentally friendly. A qualified person, who will head a small team, will be assigned the responsibility for supporting line management’s implementation of the EH&S policy and program. The team will be like “teachers” to all other employees advising them of the proper procedures/habits, and provide EH&S training to new employees as well as periodic updated training during the course of their employment. The training will include hazards recognition, and accident, spill and fire prevention.10. Equipment safeguarding will be provided, as needed, to protect employees from mechanical, high temperature and chemical risk. Employees will be provided with personal protective equipment (PPE) appropriate to their duties, such as gloves, safety shoes, ear plugs, and safety glasses or chemical goggles. Employees will be trained on the proper use of PPE, and be required to use the specified equipment for assigned task.11. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that the proposed project is being designed to meet Government of Jordan requirements, and World Bank policies, and environmental, health and safety guidelines.12. IFC will monitor MODAL’s 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:\WPEU\JOHN\JORDAN\MODAL.ERSFebruary 8, 1996 10:27 AM