Suzhou Huasu Plastics Company, Ltd.

completed

- 3 - International Finance CorporationA Member of the World Bank GroupInternational Finance CorporationA Member of the World Bank GroupEnvironmental Review Summary (ERS)Project Name China- Suzhou PVCRegion AsiaSector Chemicals and PetrochemicalsProject No. 0082131. Suzhou PVC is a joint venture between the Westlake Group of the U.S.A. and Norsk Hydro a.s. of Norway, as foreign investors, and China Jiangsu Chemical Pesticide Group Co. and China Taicang Petrochemical Co., as local shareholders. Both Westlake and Norsk Hydro are major producers of PVC with a combined capacity of over 600,000 tpy, providing the project with the necessary technical and marketing expertise. The proposed project involves the construction and operation of a 100,000 mtpa polyvinyl chloride (PVC) resin plant and a PVC film calendaring facility with a capacity of up to 24,000 mtpa within an existing industrial estate in Suzhou, Jiangsu Province, China.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 Chemicals, Petrochemicals and Fertilizers Department staff. The following potential environmental, health and safety impacts of this project were analyzed: • site location and infrastructure; • processes and techniques used; • air emissions; • liquid effluent management; • solid waste management; • environmental and safety standards applied; and • emergency prevention and response.The information provided about how these potential impacts would be addressed in the Suzhou PVC project is summarized in the paragraphs that follow.3. The manufacturing facility will be located within an existing industrial estate at the Yantze River bank north of Shanghai. The raw material, Vinyl Chloride Monomer (VCM), will be received as bulk deliveries by ship, utilizing an existing pier at the neighboring company in the industrial estate. No residents are living within the industrial estate.4. The PVC manufacturing plant will be operated based on polymerization of imported VCM and will use the suspension method. The polymerization section consists of two reactors and a blowdown tank. VCM, a suspending agent, buffer, catalyst, and water are charged to the reactors. The reaction mass is heated using steam. During polymerization reaction heat is removed through condenser and the reactor jacket. After the reaction is completed, the batch is transferred to the blowdown tank where un-reacted VCM is removed. The PVC slurry is then stripped, dried, stored and packed in bags for shipment.5. All VCM removed in the process is collected and fed to the recovery section, where VCM is recovered and recycled. The plant will also include an incinerator facility. Non-condensable gas is sent to the incinerator for disposal. The off-gas from the incinerator is treated with a diluted caustic soda solution to neutralize HCl. This off-gas will be the only emission from the plant and will comply with local requirements and World Bank guidelines.6. The plant will include wastewater treatment and recycling of process waste water. All process wastewater is collected and treated by stripping and precipitation of PVC powder. The wastewater is then sent to the wastewater treatment system for partial reuse in the plant.7. The process will not generate solid waste, and the municipal garbage disposal system will be used for domestic solid waste.8. The plant operation system provides interlocking capabilities and controls to ensure the plant performs in an environmentally safe and efficient manner. The plant design is based on U.S. engineering specifications for environment and safety.9. As VCM is a hazardous and flammable chemical, significant emergency prevention and response measures will be implemented as follows: • incoming ships and barges will have the individual cargo hold unloaded in sequence to avoid and limit spills. To prevent further migration of any spill on the water, floating booms will be available as an emergency response measure; • area monitors will be located throughout the plant to detect the presence of VCM vapors at low concentration levels. These monitors will alert personnel to find and repair all leaks immediately; • storage tanks for flammable materials are with dikes and isolated from manufacturing areas and from the plant perimeter. Proper designed relief systems and avoidance of ignition sources within the plant will further minimize the risk of fires. Emergency response to fires will automatically be activated by heat-sensitive, manually actuated and light-sensitive devices; • emergency response to fires includes combinations of water deluge from fixed spray, monitors, local hose reels and extinguisher; and • a HAZOP analysis will be prepared prior to mechanical completion.10. 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 Suzhou PVC and by conducting periodic supervision.11. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that Suzhou PVC''s proposed project is designed to meet World Bank environmental, health and safety policies and guidelines, and host country requirements.L:\CPFD2\CHINA\SUZHOU\ERSPVC.DOCFebruary 28, 1997 1:28 PM