Randon S.A. Implementos e Sistemas Automotivos

completed

- 2 - March 20, 1998International Finance CorporationA Member of the World Bank GroupInternational Finance CorporationA Member of the World Bank GroupEnvironmental Review Summary (ERS)Project Name BRAZIL: RandonRegion Latin America and the CaribbeanSector Motor Vehicles and ComponentsProject No. 008768 March 26, 1998 1. Randon is a Brazilian manufacturer of truck trailers and semi-trailers. These operations entail cutting, welding, sandblasting and painting the various trailer sections. The Company also produces axles and suspension for heavy-duty trucks. The Company is planning to undertake a modernization and expansion program in order to respond to anticipated growth in demand as well as the threat of new competition. This involves i) expansion of production facilities by 4,800 m2, ii) relocation and expansion of assembly cells, iii) relocation of a tank semi-trailer assembly line, iv) one additional assembly line for platforms, and v) one additional painting workshop line. The Project will enable Randon to increase its capacity for the production of trailers/semi-trailers from 45 units a day to 70 units a day. At the same time, the Company will double its capacity for the production of axles and suspensions. Randon will also build a small new assembly plant in Argentina in order to better serve that market. The proposed project will be carried out at Randon’s existing site in Caxias do Sul, a small city in the State of Rio Grande do Sul, and in two smaller plant sites in Sao Paulo.1. 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, and the technical appraisal and site review completed by IFC’s Technical and Environment staff. The following potential environmental, health and safety impacts of the project were analyzed:· air emissions;· liquid effluents;· solid and hazardous waste disposal· fire prevention and emergency response;· contaminated land from present and past operations; and· worker exposure to hazardous materials, fumes, noise and dust.The information provided by Randon about how each of these potential impacts will be addressed in the development of the proposed project is summarized in the paragraphs that follow.3. The air emissions from boiler and plasma torch exhausts in the Caxias do Sul plant are washed by means of water curtains which render them in compliance with the state environmental legislation and World Bank guidelines. The plants in Sao Paulo do not produce air emissions.4. The industrial wastewater at Caxias receives physical-chemical treatment and the sewage is treated in an activated sludge plant, prior to discharge into a surface recipient, in compliance with state regulations and World Bank guidelines. In the plants at Sao Paulo there is no industrial wastewater and the domestic sewage is treated prior to discharge into surface recipients according to state legislation and World Bank guidelines. 5. The company has a program for selective residue collection so that materials such as plastics, ferrous and non-ferrous metals, paint, cans and drums can be recycled. Other materials are disposed of by licensed specialized companies.6. The company uses solvents such as xilol, acetone and ethyl-acetone in their operations. These and other hazardous materials are handled according to internationally accepted standards. The company is at present replacing some most toxic materials such xilol with isoparaffine (a less toxic solvent) and synthetic or vegetal refrigerating oils.7. There are fire stations throughout the plants (hydrants, fire extinguishers and sprinkler systems) and trained fire fighters to deal with any potential emergency associated with the use of LPG, acetylene, xylene and other flammable materials. There are emergency response procedures in place and personnel receive regular training in fire fighting and emergency response. 8. The modernization and expansion program will be conducted within existing plant boundaries. The company has reported to have no problem with contaminated land from present and past operations.9. Dust, metal and organic fumes are controlled by means of exhaust systems. Workers are protected with appropriate equipment and clothing. The company has mandatory environmental, health and safety programs and all employees are required to know and use Randon’s Environmental Management Manual.10. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that Randon’s proposed project will meet World Bank environmental, health and safety policies and guidelines and host country requirements.11. 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 Randon and by conducting periodic supervision.\\StreetTalk\Shared Data@CTENET@IFC\wpeu\MAURICIO\BRAZIL\Randon ers.docMarch 26, 1998 9:10 AM