Vina Kyoei Steel

completed

Environmental Review Summary (ERS)Project Name Vietnam-Vina Kyoei Steel Ltd.Region AsiaSector Iron and SteelProject No 0051351. Vina Kyoei Steel Limited (VKS) is a joint venture between Kyoei Steel Limited, Japan and Vietnam Steel Corporation. The proposed project involves the construction and operation of a greenfield steel rolling mill in the Baria Vung Tao province in southern Vietnam.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: • project site location; • air emissions; • liquid effluents; • solid wastes; • noise; • employee health and safety; and • environmental policy.Information provided on how these potential impacts would be addressed in the VKS project is summarized in the paragraphs that follow.3. The VKS project site is located within a classified industrial zone. The Government of Vietnam is planning to build a major power plant in the same industrial zone.4. The rolling of steel is a relatively simple process and the only major air emission will be from the steel reheat furnace and from the generator. VKS will use low sulfur (0.5%) fuel to keep sulfur dioxide and nitrogen dioxide emissions at an estimated 410 mg/scm and 110 mg/scm respectively from the reheat furnace, and 170 mg/scm and 310 mg/scm respectively from the generator.5. The facility will have extensive ventilator duct coverage to avoid dust problems in the working environment. The ventilators will emit the duct air through filters ensuring that the particulate emissions will comply with local requirements and World Bank guidelines for air emissions.6. Cooling water will be recirculated in a closed system and will not result in liquid effluents. Some water might get contaminated with oil from machinery. These effluents will be treated by an external specialist company. Sanitary wastewater will be treated to comply with local requirements and World Bank guidelines.7. The rolling process will result in formation of approximately 3,600 tons scale per year. The scales consist of iron oxide and will be deposited in an on-site landfill.8. The facility will not result in excessive noise levels outside the facility boundary. Employees working in areas with high noise levels will be subject to mandatory use of hearing protection.9. VKS will provide employees with all necessary personal protective equipment including safety shoes, safety helmets and hearing protection for working in heavy steel industry. A safety section including emergency room with personnel will be available at the plant. Thirty employees has been sent to Japan for training in rolling mill operation and safety at one of Kyoei Steel''s major mini-mills.10. A written environmental policy in under preparation and will be ready before start-up of the plant. A person in charge of environmental matters will also be assigned before plant start-up.11. 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 VKS and by conducting periodic supervision.12. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that Vina Kyoei Steel''s proposed project is designed to meet World Bank environmental, health and safety policies and guidelines, and host country requirements.