P.T. Sayap Mas Utama (Multicompany with 8414)

completed

- 2 - International Finance CorporationA Member of the World Bank GroupInternational Finance CorporationA Member of the World Bank GroupEnvironmental Review Summary (ERS)Project Name Indonesia-Wings Soap & Detergent ManufacturingRegion AsiaSector ManufacturingProject No. 007508 March 24, 19971. This project involves an expansion of the Wings group’s soap and detergent manufacturing operations at its two plants in Surabaya and two plants in Jakarta. The plants produce a variety of product lines, including cream and powder detergents and bar soap, for distribution both nationally and internationally. The expansion program will include expansion of detergent compounding/mixing capacity, upgrading and expansion of packaging lines, setting-up of in-house printing capability for labeling and packaging printing, expansion of the distribution network by establishing new warehousing and distribution centers, and upgrading environmental health and safety conditions in all four plants.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 visits completed by IFC Technical and Environment Department specialists. The following potential environmental, health and safety problems of this project were analyzed: · air emissions;· liquid effluent treatment and disposal;· solid and hazardous waste handling and disposal;· site selection criteria for warehousing and distribution centers;· fire prevention and emergency response;· employee exposure to noise, chemicals and dust; and· environmental, health and safety performance of existing operations.Information on how these potential impacts will be addressed in the Wings project is summarized in the following paragraphs.3. Air emissions from the four plants include those from the sulphonation process as well as a variety of heaters, dryers and furnaces which are fueled by either natural gas or fuel oil. The major heat sources, such as the furnaces for production of “water glass” (sodium silicate), are fueled with natural gas. Air pollution abatement equipment already in place includes cyclones, bag filters and electrostatic precipitators for removal of particulates. Monitoring of all stack emissions will be required to ensure that all pollution abatement equipment is performing as per specification and that all stack emissions conform to local standards and World Bank guidelines. Initial monitoring will be carried out by December 31, 1997.4. All of the plants have basic physical-chemical treatment facilities for the limited amounts of process and/or wash water. These facilities will be upgraded as part of this project to meet local effluent standards and World Bank guidelines. An assessment of the upgrading needed and preparation of detailed engineering plans to achieve compliance will be completed by June 30, 1997. Domestic sanitary wastewater is treated in septic systems at all locations.5. Solid wastes are limited to broken packaging and product and used equipment, and these are recycled to the maximum extent possible and/or disposed of in approved landfills. No hazardous wastes are generated. Existing cooling equipment which uses CFCs will be replaced as part of normal equipment maintenance over the next five years. No PCBs are currently used in any electrical equipment and none will be used in any systems installed as part of this project6. Fire protection systems in place include emergency pumps, hydrants and portable fire extinguishers. Fire protection in storage areas will be reviewed and upgraded as part of the plant expansion. Emergency response procedures are in place.7. Noise levels in certain areas of the plants are high, and the sponsors will provide and enforce the use of hearing protection in such areas, as per World Bank guidelines. As part of the upgrading of these plants, noisy ventilation fans will be replaced with quieter equipment, and sound baffles for noisy pumps and other equipment will be installed. While workplace conditions are generally good throughout the existing plants, Wings has committed to further improvements as part of this project. Dust is a minor problem in certain areas, including raw material handling and in packaging of powder detergents, and management will ensure that all staff in such areas wear proper personal protective equipment. Further assessment of noise and dust levels will be carried out, along with preparation of detailed plans to achieve compliance, by June 30, 1997. Wings will further develop training materials dealing with occupational health and safety and will ensure that all staff receive appropriate training for their job roles and responsibilities.8. Any distribution centers developed under this project will be located in commercial premises or areas, and will be sited with due regard to possible environmental impacts and in conformance with World Bank guidelines.9. In terms of product impacts on the general environment, Wings currently uses both linear and branched alkyl benzenes in its detergent production process. Linear alkyl benzenes are preferred from an environmental viewpoint, since they are degraded much more readily in treatment systems and the natural environment. Wings is in the process of gradually replacing branched with linear alkyl benzenes in its production processes.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 and by conducting periodic supervision.11. 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 host country requirements.L:\WPEU\PNEAME\INDONESI\WINGS.ERSMarch 24, 1997 5:09 PM