PT Alumindo Light Metal Industry

completed

- 2 - October 18, 1996International Finance CorporationA Member of the World Bank GroupInternational Finance CorporationA Member of the World Bank GroupEnvironmental Review Summary (ERS)Project Name INDONESIA-P.T. Alumindo Light Metal IndustryRegion ASIASector Non Ferrous MetalProject No. 7789 1. P.T. Alumindo Light Metal Industry (Alumindo) is a member of Maspion, an important business group in East Java and the largest manufacturer of kitchenware in Indonesia. Maspion is diversified, with main activities in aluminum, stainless steel, steel, plastic, electronics and chemicals. The Maspion Group is 100% owned by the Alim and Gunardi families in Surabaya. The proposed project involves construction and operation of a plant for processing of aluminum ingots through hot and cold rolling to aluminum sheet and foil. The plant will be located adjacent to Alumindo’s present production site in Sidoarjo, near Surabaya, the capital of East Java.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 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 this project were analyzed:· site location;· air emissions;· liquid effluent treatment;· solid wastes management;· control of noise emissions; and· occupational health and safety, and technical cooperations.Information provided on how these potential impacts would be addressed in the Alumindo project is summarized in the paragraphs that follow.3. The existing Alumindo site is 191,000 m2 and located in an industrial area near Surabaya. The industrial area has full developed infrastructure including water and wastewater treatment facilities. The new plant will be located adjacent to Alumindo’s present production site.4. Air emissions from the existing Alumindo operations are at the moment in compliance with World Bank guidelines except for particulate emissions. As part of the project Alumindo will change from the use of oil fuels to gas fuels and take the necessary actions to ensure full compliance with local regulations and World Bank guidelines of both existing and new production facilities. Alumindo will further shut down its existing hot mill after completion of the project, this will eliminate emission of coolant exhaust fumes from this operation.5. The wastewater treatment and recycling scheme at Alumindo is going to be comprehensive with recirculation of the main stream of wastewater with sand/carbon filtering and reverse osmosis treatment where needed. The remaining wastewater will be treated to comply with local requirements and World Bank guidelines before discharge.6. Solid and special wastes will be recycled where possible. Other waste types like sludge from coolant units and oil waste, in total amounting to 5-7 tons per year will be handled by specialist waste treatment companies.7. Hot and cold rolling of aluminum creates noise. Noise prevention and limitations are issues to be considered in equipment and machine selection. In areas where the operating noise levels can not be kept below 85 dBA the employees will be equipped with personal protective gear. Alumindo will ensure that the resulting noise levels outside the plant area will comply with local regulations and World Bank guidelines (55 dBA day/ 45 dBA night in residential areas).8. Alumindo has a technical cooperation agreement with Sidal, Belgium, for the training of its employees. The training will include operating procedures, operating safety and maintenance. The mill operators and supervisors have recently received this training at Sidal’s facilities in Belgium.9. IFC will ensure ongoing compliance with World Bank environmental, health and safety policies and guidelines during the life of the project by evaluating monitoring reports submitted annually to IFC by P.T. Alumindo Light Metal Industry and by conducting periodic supervision.10. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that P.T. Alumindo Light Metal Industry’s proposed project will meet World Bank environmental, health and safety policies and guidelines, and host country requirements.