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Environment protection

The management of IHB oversees the environmental impact from the productions in the group. It is required that the subsidiary companies report on a yearly basis in their business plans on the environmental impact from their activities and the measures to be taken in case of a negative impact.

 

IHB

 

The nature of operations of IHB Plc and its assets do not raise environmental issues. Insofar as the operations of the Holding are determined by its subsidiaries, their ecological issues indirectly affect also the use of assets within IHB Plc Group as a whole.

 

IHB Group companies

 

The accession of Bulgaria to the European Community involves commitments at a national level and subsequently - requirements to the business operating in the country to meet environmental norms and standards in terms of the production capacities and processes. Increasing emphasis is placed on the solution of the various related issues.


Maritime businessShipbuilding and Ship Repair

 

The overall technological process at Bulyard Shipbuilding Industry, conforming to all normative documents and operative instruction for proper execution of the relevant activities, is compliant with the respective environmental concerns.

 

In 2006 and to present, the company has executed the following environmental events:

 

  • Step-by-step thorough cleaning of the whole area of the company from production, construction, residential, petroleum waste;
  • A program for waste management up to the year 2011 has been elaborated and approved by the Regional Inspectorate on Environment and Waters;
  • Strict control has been enforced to maintain order and cleanness in the area of the company through regular inspections and monetary sanctions;
  • The collection and disposal of scrap materials has been organized;
  • Waste materials are collected separately according to financial and environmental concerns;
  • Regional Inspectorate on Protection and Control of Public Health - Varna has issued to the company a sanitation certificate for handling of hazardous waste;
  • A large-scale inventory of the electrical equipment potentially containing polychlorinated biphenyl has been made, in compliance with European environmental requirements;
  • A scheme for reduction of harmful emissions and a plan for solvents management as per the production and technological processes of the company and in compliance with Regulation № 7/21.10.2007 have been elaborated and approved by the Regional Inspectorate on Environment and Waters;
  • Sample collection points for the organized emission sources from the installation for tin processing - zero line /1 collection point for the blasting sector, one for the sector and one for the drying sector / were determined as per the technical documentation of the technical department and Regulation № 6/26.03.1999. These have been approved by the Regional Inspectorate on Environment and Waters;
  • Inspections by the controlling bodies have been carried out for all environmental aspects, no serious violations have been established, no financial sanctions for environmental violations have been imposed.

 

Urgent measures for the resolution of the following issues are forthcoming:

 

  • Estimate and repair of the sewerage system, update of the map of the system with all connection points will be carried out in 2007;
  • Development, introduction, and execution of a system for separate collection of residential waste. The task will continue during the following year and will be executed in line with European requirements and the waste management program of the company;
  • On-going regular measurements of the dust, noise, and organic compounds pollution levels;
  • Establishment of a permanent structure for reduction of volatile organic compounds emissions of the organized emissions sources from the tin processing installation - zero line;
  • Construction of an indoors blasting and painting chamber.

 

Port Operations

 

In order to meet the environmental requirements for port activities, in 2006 Dockyad Port - Bourgas AD developed and approved a Corporate Waste Management Program up to 2011, in compliance with the European environmental standards.

 

 

Machine Building

 

The technological processes at ZMM Sliven AD which have an impact on the environment are directly connected to components coating - oxygenation, chroming, galvanization. The waste waters are collected in a water purification station with separate basins for acid-alkaline waters and chrome purification waters, where they are neutralized with the necessary chemicals. After deposition, a chemical analysis is carried out and if the results are satisfactory the water is discharged into the residential sewerage system and the solid waste, i.e. the deposit, is stored in specialized cisterns on the territory of the company. There is no government decision yet as to how and where this type of waste is to be stored. In our opinion it will be one of the key problems requiring investments for its definitive solution.

 

ZMM Sliven AD has a dedicated swarf unit where the swarf is stored separately from other waste until it is handed over for recycling. A lubricant unit is also established to store used lubricants which are periodically handed over to the refineries for secondary processing.

 

At Mashstroy AD the following production processes have an impact on the environment:

 

  • Manufacture of castings from gray cast iron;
  • Metal coating;
  • Lacquer coating;
  • Generation of solid metal waste.

 

The quartz sand is the principal material used for manufacture of castings. Its drying releases gas emissions attracting tiny sand particles and dust. The separation of the solid particles takes place in three cyclones. The gases from the casting section are released directly into the atmosphere through ventilation.  In the melting unit an aspiration system has been mounted for organized release of the emissions from metal melting activities. Its commissioning is forthcoming.

 

The waste sand from smelting causes some problems because until recently it was stored on-site at the company. As a temporary measure the sand is deposited at the specialized site at the old city landfill of Troyan with the permission of the Regional Inspectorate on Environment and Waters - Pleven and Troyan Municipality. Because of the large volumes /1,500 - 2,000 tons per year/, the site is almost full. It is possible to recycle the used smelting sand so that only 20% of it will be deposited to the designated depot.

 

Pursuant to EU Directive 99/13/EC and Regulation No 7 of 2003 on the allowed norms for emissions of volatile organic compounds released into the atmosphere as a result of the use of organic solvents in certain installation, it will be necessary to modernize the existing painting chambers. The operators of installations within the scope of the Regulation need to submit to the competent bodies annual plans for solvents management. Such a plan is about to be developed.

 

A part of the metal waste is reused.  

 

All plants at ZMM Nova Zagora AD have been designed and constructed in compliance with the environmental requirements during operation, and the regulated operations per types of production activities have been determined in advance and are monitored for compliance with the normative legislation of the country.

 

In 2006 Elprom ZEM AD did not register any specific problems with negative environmental impacts. The company holds an ISO 14 001:2004 certificate for environmental safety and ecological production. The production technologies presently used do not have a negative impact on the environment. Problems occur related to the regular maintenance of the existing aspiration systems in sections impregnation, vacuum-compound plant, lacquer machine, and the section-baking unit of the coil workshop.  With the accession of Bulgaria to the European Union and the need of harmonization of the environmental legislation and norms, a solution will need to be found for the following issues:

 

  • Replacement of the impregnation lacquer which is used together with a very harmful solvent with a new environment-friendly and water soluble type of lacquer;
  • Purchase of a painting chamber for compliance of the painting section with the environmental norms and labour safety requirements;
  • Construction of filters in the rotor section.

 

In terms of environmental safety Leyarmach AD has made serious investments. The two operational units emitting the most dust - regeneration and short blasting chamber - are connected with dry filters from where the dust is collected in special containers and bags and disposed of by a specialized company. Sand regeneration makes the process effectively waste-free in terms of moulding mixtures. Local aspirators have been built to the separate operational units. The aspirators in the cleaning sector are not operational. On the roof there are about 30 axial ventilators coming out from the cupola furnace. The amortization of the heating aggregate of the furnace and the heightened requirements of foreign clients are some of the reasons for the decision of the management of ZMM Bulgaria Holding AD to gradually stop the cupola furnace and start induction melting of the cast iron. The two new induction furnaces bought from Inductotherm, Turkey, will solve the problem with the gases released by these production processes.

 

It is necessary to construct a new sector for production of transmission gear cores, to carry out a number of repair and rehabilitation works on the regeneration system for the sand, blenders, and hoisting equipment, to renovate the casing inventory. It is urgent to solve the issue with the earthing and lightning protection installations.

 

The efforts of Leyarmach AD for solution of environmental issues focus mainly in two directions:

 

  • Organizational, technical, and investment measures for limiting to the minimum the principal pollutants - washing grate, shot blasting chamber, mould cleaning section;
  • Complex measures for improvement of the environmental conditions in the vicinity of the main technological aggregates.

 

Furniture Production

 

The production technology at Augusta Mebel AD has been organized towards meeting the environmental requirements within the presently attainable limits. The main raw material - wood in its various aspects - is almost completely utilized. The released solid waste from the wood processing are burnt in one of the steam boilers which has been modified for this purpose.  Other solid waste - deposits from the lacquer section, deposits from the press unit, and empty lacquer containers are in negligible quantities, but at the insistence of the Regional Inspectorate on Environment and Waters they are determined as hazardous and stored in a waste storage facility.

 

Air protection is a specific for the company problem regarding negative environmental impact. Air pollution is effected mainly through exhaust gases from the chimney of the steam station and when drying lacquer coating:

 

  • The company has now mounted a gas-powered installation but the burning of the wood waste will not be entirely eliminated;
  • The volatile organic compounds from organic solvents threaten to become a problem for the company in case of an increase of the quantity of the used volatile nitro-cellulose lacquers. As per the above-cited Regulation №7, in case of an annual consumption of solvents exceeding 15 tons, the operations of the company fall within the scope of the Regulation. This will require the elaboration of a Solvents Management Plan and Emission Reduction Scheme, whose main objectives are the reduction of harmful emissions. The solution of the problem is to look for other types of lacquer with minimum or no emission of volatile organic compounds into the atmosphere.

 

River Cruises

 

The ships of Dounav Tours AD operate in European waters and their operations comply with the environmental regulations and laws of the countries through which they navigate. Potential pollution may occur from the lubricants used for the cruise ship engines. The problem has been solved by disposing the lubricants against payment at places specified for the purpose.

 

The European Union pays special attention to the solution of environmental issues in pre-accession and newly-joined countries. It is not a coincidence that this is one of the fields in which various institutions extend gratuitous grants and as of 2007 the Accession Funds will also start subsidizing such project. Companies in the IHB Plc group have used and are currently using subsidies from various state funds for the solution of their environmental problems.

 

In 2004 and 2005 Leyarmach AD and Elprom AD were granted funding from the Labor Conditions Fund to the Ministry of Labor and Social Policy in order to ensure healthy and safe working conditions. In 2006 Bulyard Shipbuilding Industry EAD was also approved for funding by the same fund. In 2007 Elprom ZEM AD launched a second project. The project of Leyarmach AD with energy saving and environmental effects will also rely on European subsidies.