metrodragon steel corporation-smelting plant and rolling...

METRODRAGON STEEL CORPORATION-SMELTING PLANT AND ROLLING MILL FACILITY EXPANSION PROJECT

METRODRAGON STEEL CORPORATION-

SMELTING PLANT AND ROLLING MILL FACILITY

EXPANSION PROJECT Smelting Plant and Rolling Mill Facility Expansion Project

MGM Industrial Compound, Brgy. Bagbaguin, Valenzuela City

EXECUTIVE

SUMMARY

FOR THE

PUBLIC

METRODRAGON STEEL CORPORATION-Smelting Plant and Rolling Mill Facility Expansion Project


EXECUTIVE SUMMARY FOR THE PUBLIC

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a.) Project Description

METRODRAGON STEEL CORPORATION was incorporated on May 13, 2009 under SEC

Register Number CS200906528. METRODRAGON STEEL CORPORATION primary purpose

is engaging in the manufacture and selling or otherwise dealing in, at wholesale and retail

such as product as: steel deformed bar, plain round bar, square bar, angle bar, steel billet,

and wire rod. The proponent is about to introduce an additional process to complete the

production of steel within their compound, the recycling of scrap metals to form raw

materials for the steel rolling mill. The metal recycling process will undergo smelting

process through induction furnace technology. Faced with stiff competition in the local

market share, METRODRAGON STEEL CORPORATION embarked in another ambitious

endeavor to further demonstrate its commitment to quality and customer satisfaction-to

be ISO 9001:2008 Certified. Despite the recent economic contraction, METRODRAGON

STEEL CORPORATION has continued the tradition of producing unparalleled quality steel

bars and providing total customer satisfaction to its ever increasing customer base.

The existing plant covers an area of 25,519.20 square meters with an expansion area of

55,206.10 square meters for the new steel production line.

The rolling mill is already operating; producing round bars and structural bars while the

smelting plant is in its construction stage and is proposing for a test run. The installation

and construction of the smelting plant and the mini rolling mill is expected to be complete

and fully functional within the year.

The existing rolling mill has a rated capacity of 40 tons per hour. The plant operation is 24

hours per day (2 shifts per day) and 6 days per week.

METRODRAGON STEEL CORPORATION has an issued Environmental Compliance

Certificate (ECC NCR-0501-0021 Amending NCR 2005-01-19-021-102) last May 13, 2010

and covers the operation of a Steel Rolling Mill with rated production capacity of 40 Tons

per hour.

In order to meet the demand of steel in the country, the proponent decided to expand

their production by putting up a Mini Rolling Mill and a Smelting Plant in addition to their

existing Steel Rolling Plant. The construction of the Mini Rolling Mill and Smelting Plant of




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the METRODRAGON STEEL CORPORATION is already on its 100%. In order to operate,

the proponent is waiting for the approval of its ECC.

METRODRAGON STEEL CORPORATION has an approved and existing capacity of 40

MT/HR for their Steel Rolling Mill. This Environmental Compliance Certificate (ECC)

Amendment covers the addition of Mini Steel Rolling Mill with capacity of 8 MT/HR and

Smelting Plant with 4 Units of Induction Furnace with 12 MT/HR, total of 48 MT/HR. In

terms of lot area, the proponent has an existing of 25,519.20 sq. m. This amendment also

covers the additional lot area of 55,206.10 sq. m. The proponent will cover a total lot area

of 80,725.30 sq. m., both the existing and the expansion.




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Project Type, Components, and Size

The table below shows the Project Gross Floor Area of Metrodragon Steel

Corporation

Existing Area TCT No.: V-92906 Area: 14,462.20 M²

TCT No.: V-92907 Area: 10,768.00 M²

TCT No.: V-92908 Area: 289.00 M²

Total Area: 25,519.20 M²

Additional Lot

Acquired for the

Expansion

TCT No.: C-404380 Area: 6,715.00 M²

TCT No.: V-92903 Area: 2,596.40 M²

TCT No.: V-101729 Area: 10,240.00 M²

TCT No.: V-104651 Area: 16,382.20 M²

TCT No.: 001-2017002968 Area: 8,893.00 M²

TCT No.: 013-2015002889 Area: 400.00 M²

TCT No.: 013-2017003385 Area: 7,646.00 M²

TCT No.: V-90556 Area: 655.00 M²

TCT No.: V – 70555 Area: 3,165.00 M²

TCT No.: G-326671 Area: 5,228.50 M²

Total Area: 55,206.10 M²

Total 25,519.20 M²

Steel Rolling Mill

55,206.10 M²

Additional Mini

Rolling Mill and

Smelting Plant

80,725.30 M²

Gross Floor area

Existing + Expansion




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The table below shows the Project Size of Metrodragon Steel Corporation:

Existing Expansion Total Annual Capactiy

(Based on 24

Hours/day

6days/week)

Steel Rolling Mill 40 MT/

Hour

- 40 MT/ Hour 299,520

MT/Year

Deformed Bars,

Round Bars, and

Square Bars

Mini Steel Rolling Mill - 8 MT/ Hour 8 MT/ Hour 59,904 MT/Year

Deformed Bars,

Round Bars, and

Square Bars

Smelting Plant (4 Units

of Induction Furnace)

- 4 Units of

Induction

Furnace

48 MT/Hour 299,520

MT/YEAR

Billets

Area 25,519.20

M²

55,206.10 M² 80,725.30 M² -




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Table below shows the component each plant area of Metrodragon Steel

Corporation:

PLANT AREA SUPPORT FACILITIES AND POLLUTION

CONTROL DEVICES

STEEL ROLLING MILL 1.WATER PUMP AREA

2.LSFO TANK AREA

3.LSFO PUMP AREA

4.STORAGE OF FINISHED GOODS

5.REHEATING FURNACE CONTROL ROOM

6.ROLLING PRODUCTION AREA

7.CONTROL ROOM

8.SWITCH ROOM

9.STORAGE OF RAW MATERIAL

MINI STEEL ROLLING MILL 10.WATER PUMP AREA

11.MINI-ROLLING LSFO TANK

12.MINI-ROLLING PRODUCTION AREA

13.STORAGE OF FINISHED GOODS

14.RAW MATERIAL STORAGE AREA

SMELTING PLANT 15.PUMP AREA

16.BUILDING 1(PRODUCTION AREA)

17.BUILDING 2(RAW MATERIAL STORAGE)

18.BUILDING 3(RAW MATERIAL STORAGE)

19.DUST COLLECTOR AREA

20.ELECTRICAL SWITCH ROOM




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Figure 1: Mini Rolling Flow Figure 2: Steel Rolling Flow

Process/Technology

The process/technology of Metrodragon Steel Corporation is subdivided into two:

(1) Steel and Mini Rolling Manufacturing Process and (2) Smelting Manufacturing

Process.

MINI AND STEEL ROLLING MANUFACTURING PROCESS

Mini Rolling Steel Rolling




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Figure 3: Smelting Process Flow

SMELTING MANUFACTURING PROCESS




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Induction Furnace Process

The greatest advantage of the induction furnace is its low capital cost compared with

other types of melting units. Its installation is relatively easier and its operation simpler.

There is very little heat loss from the furnace as the bath is constantly covered and there

is no noise during its operation. The molten metal in the induction furnace is circulated

automatically by electromagnetic action so that when alloy additions are made, a

homogeneous product is ensured in minimum time. The time between tap and charge,

the charging time, power delays etc. are items of utmost importance to meet the

objective of maximum output in tons/hour at low operational cost. The process for

manufacturing steel may be broadly divided into the following stages.

1.Melting time charge mixed of steel & iron scrap

2.Ladle teeming practice for casting

3.Direct teeming practice for billets casting unloadable teeming machine

4.Melting the Charge




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Resource Utilization

The following are resource/utility provider for Metdragon Steel Corporation:

UTILITY PROVIDER

Electricity Aboitiz Power

Water Espiritu Water Supply

Telecommunications Philippine Long Distance Telephone (PLDT)

LSFO Supplier Shell or Erisoil

Technology

For the additional rolling mill facility, the proponent will be using the existing technology

being used by the plant. The proposed rolling mill is a smaller version of the existing steel

rolling mill producing de.

The proponent chooses the induction furnace technology, an electrical furnace in which heat

is applied by induction heating of metal. Induction furnace has a variable production capacity

used to melt steel and other metals. The proponent selected the induction furnace because

of its clean, energy efficient and well controllable melting process compared to most other

means of metal melting.

Most modern foundries use this type of furnace, and more iron foundries are replacing

cupolas with induction furnaces to melt cast iron, as the former emits lots of dust and other

pollutants. Since no arc or combustion is used, the temperature of the material is no higher

than required to melt it; this can prevent loss of valuable alloying elements.




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b.) Proposed Location with Vicinity Map (Current) of the Project Facilities/Components

and the Criteria and Process of Decision Making in Choosing from the Alternatives

The Metrodragon Steel Corporation is located at MGM Industrial Compound, Brgy.

Bagbaguin, Valenzuela City.

PROJECT SITE

METRODRAGON STEEL

CORPORATION

Figure 4: Vicinity Map




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Figure 5: Geographical Coordinates

Figure 6: Satellite View of the Existing Steel Rolling Mill and the Newly Constructed Smelting Plant and Mini Rolling Mill




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Site Selection

The site was selected as the primary location of the project because of the available space for

the project’s operations. Furthermore, the project site corresponds to the area requirement

of the Proposed Expansion of Steel Rolling Mill and Smelting Plant Facility Project.

Lots acquired by the proponent are adjacent to the existing steel rolling mill. This cuts the

transportation cost of the smelting plant’s product to the steel rolling mill facility of the

proponent. Site location is already predetermined since this project is an expansion of the

existing steel rolling mill. The proposed project will include construction of a smelting plant,

to be erected beside the existing steel rolling mill. Instead of looking for a separate site for

the smelting plant, the proponent decided to locate it at the beginning of the steel

manufacturing process. The site was also selected because of its accessibility to numerous

metal scrap traders within Metro Manila.




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c.) Project Proponent

Company Metrodragon Steel Corporation

Address 3 MGM Industrial Compound, Barangay Bagbaguin,

Valenzuela City

Project Proponent MR. ZHUANG YI QIANG/ Owner

Contact Person/

Authorized

Representative

MR. ROMEO VELASCO/ Plant Manager 936 9783 local 115

Permits Agency Date Issued

SEC & Articles of Incorporation

Securities and Exchange Commission

June 4, 2014

Zoning Certificate/Locational Clearance

Valenzuela City Hall November 25, 2014

Environmental Compliance Certificate (ECC) ECC No.: ECC-NCR-0501-0021

Environmental Management Bureau – National Capital Region

May 13, 2010

Permit to Operate POA No.: 15-POA-E-137504-452


August 14, 2015 Expiry: June 22, 2020

Pollution Control Officer Accreditation Jayson Sanchez COA No. 2018-NCR-0291


Managing Head Romeo Velasco





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Figure 7: Photographs of Smelting and Mini Rolling Plant Construction

d.) Projected Timeframe of the Project Implementation

The proposed Smelting Plant and Mini Rolling Plant of Metrodragon Steel Corporation has

been constructed. Figures above show the updated site photographs for both Smelting

and Mini Rolling plant.




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As of now, the proponent is waiting for the approval of the Environmental Compliance

Certificate for the Mini Steel Rolling Mill and Smelting Plant be operated.

e.) Concise Integrated Summary of the Major Impacts and Residual Effects after

Mitigation

MODULE IDENTIFIED IMPACTS

MITIGATING MEASURES RESIDUAL

LAND Devaluation of land value as a result of improper solid waste management

Designation of temporary storage area.

This provides safety to the people and cleanliness on the facility. Putting up temporary storage area will also help the monitoring of hazardous wastes become at ease since one location will be monitored only by the Environmental Unit (EU).

Regular collection through private garbage collector

This will provide sanitation and cleanliness on the facility.

Collection/buying of scrap/reusable materials by scrap trading company.

Collection/buying of scrap/reusable materials will help the environment through recycling as well as it will also generate additional revenue to the company.

Planting of endemic species or reforestation

Heat and air pollution will be reduced and regulated with the help of planting of trees and ornaments. This will also help aesthetically through beautification of the project site.

Provision of Material Recovery Facility (MRF)

The provision of Material Recovery Facility (MRF) will help the sanitation and cleanliness of the facility.

Collection, correct storage and labeling, and hauling

The collection, correct storage and labeling will




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and treatment of hazardous wastes by DENR-EMB accredited hauler and treater.

help not to combine certain hazardous wastes through its reactivity since there are hazardous wastes that should not be combined with one another. This will provide safety to the people who are handling these hazardous wastes. Proper hauling and treatment of hazardous wastes will also ensure proper treatment and disposal of hazardous waste since these are toxic substances which should not be combined with regular wastes. Technical handling also is given to these hazardous wastes which should be handled by a person who is knowledgeable on hazardous waste handling.

Improper debris disposal

Hiring of third party who will collect the debris and dispose it properly.

This hauling of debris by a third party will ensure proper disposal.

Contamination of the land due to oil leaks

Provide proper construction machines and vehicles and maintain them properly.

Proper usage of construction machines and vehicles and maintaining them properly will ensure an efficient work output avoiding soil contamination due to oil leaks.

AIR Degradation of Air Quality

Ensure proper maintenance of vehicles and heavy equipment.

Proper maintenance of vehicles and heavy equipment will lessen the production of air pollutants and lessen the incomplete




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combustion and may remove unnecessary noise.

Ensure proper maintenance of standby generator set and plant facility’s equipment.

Proper maintenance of Generator Set will lessen the production of air pollutants and lessen the incomplete combustion.

Public announcement of keeping your vehicles running in good condition to avoid emission of harmful smoke.

This will decrease the production of air pollutants.

Sprinkling of water on grounds.

Sprinkling of water on ground will suppress dust and minimizing the effect of Particulate Matters.

Regular wetting of ground soil in the construction site.

This will suppress dust and minimizing the effect of Particulate Matters.

Construction site must be fenced for safety reason and security reasons.

This is for safety purposes since falling debris may cause accidents if construction site is not covered.

Application of Permit-To-Operate for APS/CF.

The application of Permit-To-Operate ensures that all compliance is on standards. This will help further compliance and guide to the proponent for maintaining air quality.

Temperature setting for Reheating Furnace.

Temperature setting for reheating furnace is for safety on the operations since uncontrolled Heat from Reheating Furnace may cause accident and will be a significant contributor to climate change

CCTV installation for stack monitoring by using Low Sulfur Fuel Oil (LSFO) as

This installation of CCTV is used to monitor stack with which to monitor the air




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fuel oil Reheating Furnace, the operation achieves lower emission of Sulfur Dioxide.

quality emitted by the facility.

Provide high fence within plants vicinity

Providing a high fence within the plants vicinity will reduce impact to the adjacent properties.

Increase in ambient noise level

Installation of control devices such as mufflers and noise suppressor to all construction equipment.

Installation of mufflers and noise suppressors will abate the noise pollution the plant may generate.

Provision for temporary noise barriers particularly in noise sensitive areas in the immediate vicinity of the construction area.

Noise barriers will minimize the noise generation.

Schedule use of equipment or machines emitting high noise during day time operation.

This will minimize the noise generation since simultaneous operation of machines emit high noise.

Defective equipment or parts with abnormal noise will be either replaced or repaired.

Replacement of defective equipment of parts with abnormal noise is for the safety purposes as it may cause accident if not repaired.

Scheduling of certain high noise emitting works to more acceptable times of day.

This will minimize the noise generation since simultaneous operation of machines emit high noise.

Enclosure of source noise. Noise enclosure will minimize the noise generation.

Change in local micro-climate

Training programs and good housekeeping programs to decrease energy consumption throughout the plant.

Good housekeeping program will entail minimum impact to the climate change since personnel who is in-charged to operate Air Pollution Source Installations is




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trained and will have minimum mistakes.

WATER Change in Drainage Morphology/ Inducement of Flooding in Stream Volumetric Flow

Consider the design of storm drainage lay-out if it can handle the amount of rainfall during heavy rains.

Proper design of storm drainage lay-out will prevent flooding.

Clearing of storm drainage lay-outs and drainage canals due to debris during construction.

Clearing of storm drainage will prevent flooding.

Construction of temporary works such as silt traps, deviation channels mounting, barriers, and trenches around the stock piles.

Silt traps, deviation channels mounting, barriers, and trenches will prevent flooding.

Control of waste water discharge by the proposed installation of Sewage Treatment Plant (STP).

This will prevent overflowing of discharge and prevent flooding.

Change in Stream, Lake Water Depth

Hauling of debris during construction for these materials not to be disposed into lakes/streams directly.

Hauling of debris during construction will prevent flooding.

Depletion of Water Resources Competition in Water Use

Water supply is delivered only that is why competition in water use is not that critical.

This will have no impact to the adjacent properties in terms of water competition.

Change in Bathymetry

Industrial waste water (cooling water) for recycling to prevent discharges.

Recycling of water will promote conservation. This will also ensure the non-discharge of effluent to the environment without treatment.

Degradation of Ground Water Quality

Proper portable toilet for construction workers with proper waste water disposal, i.e. hauling of waste water for this domestic usage during construction phase.

This is for sanitation purposes and will ensure non-discharge of domestic waste water to the environment without treatment.




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Discharges of oily waste from heavy equipment may arise. With this, MSC must be strict when it comes in maintenance of construction vehicles onsite to prevent oil spills.

Regular inspection and maintenance of the STP. STP effluent should comply with the Effluent Standards of DENR for Class C Waters.

Compliance to the set standards will prevent degradation of water quality.

Sewage Treatment Plant (STP) will have a part of chlorination, with which accidental release of chlorine may arise. Provision of chlorine storage facility equipped with chlorine gas detector and alarm system.

Installation of chlorine gas detector with alarm system will ensure safety.

Implementation of an emergency response plan for chlorine leak.

This will ensure safety to people.

Degradation of Surface Water Quality

Require contractors to collect used oil and other hazardous wastes for appropriate disposal.

This will prevent oil contamination.

Discharges of cement containing residues, thus prohibit washing of cement mixers at construction sites

This will prevent soil contamination and change in topography.

Regular inspection and maintenance of STP.


STP effluent should comply with the Effluent Standards of DENR for Class C Waters.





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Improvement of Water Quality by Monitoring of Meycauayan River (upstream and downstream of STP outfall)

Improvement of water quality.

Debris Ensure that debris are confined within the site.

This prevents flooding.




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f.) Identified Stakeholders

Stakeholders identification was defined by DAO 2017-05 “Guidelines on Public Participation

under the Philippine Environmental Impact Statement (EIS) System”.

Stakeholders are persons (natural or judicial) who affect or are affected by the project or

undertaking, such as, but not limited to, members of the local community, industry, local

government units (LGUs), National Government Agencies (NGAs), and non-government

organizations (NGOs) and people’s organizations (POs).

MUNICIPALITY BARANGAY STAKEHOLDERS

Valenzuela City Brgy. Bagbaguin -City Office -City Planning and

Development Office -City Housing and

Resettlement Office -City Environment and

Natural Office -City Engineering Office

-Barangay Officials -Barangay Councils

-Residents near MSC premises

-Purok and Sitio Leaders -Local Organizations

-Concerned Local Housing Association

Brgy. Mapulang Lupa

Caloocan City Brgy. 165, Bagbaguin

Brgy. 166, Caybiga

Other Invitees (Indirect Impact)

Brgy. Ugong, Valenzuela City




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g.) Project Proponent’s Statement of Commitment and Capability to Implement

Necessary Measures to Prevent Adverse Negative Impacts

AIR POLLUTION CONTROL DEVICES/FACILITIES

The proponent installed Air Pollution Control Devices/Facilities such as:

o Dust Collecting Systems for the Rolling Mill

o Bag House Filter for the Reheating Furnace and Induction Furnace

o Hood Design for Induction Smelting Furnace

o Indoor Dust Baghouse Ducting System for Indoor Fugitive Dust

WASTE WATER TREATMENT FACILITY

The proponent will install Sewage Treatment Facility at the 4th Quarter of 2019 to treat

domestic sewages coming from the operation of the plant. They will conduct waste

water testing as part of monitoring of their effluent quarterly to ensure that they are

complying with the standards set by the DAO 2016-08.




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Information on where to get a copy of the EIS for further information

Full copy of Environmental Performance Report and Management Plan (EPRMP) of

Metrodragon Steel Corporation can be secured from:

INSTITUTION ADDRESS CONTACT NUMBER

DENR-EMB-Central Office DENR Compound, Visayas

Ave., Diliman, Quezon City

(02) 931 1331

DENR-EMB-Region 3 Turquoise St., Zone 2,

Ramar Village, San

Agustin, San Fernando,

Pampanga

(045) 455 3316

DENR-EMB-NCR National Ecology Center,

East Ave., Diliman,

Quezon City

(02) 931 2397

LGU of Valenzuela City,

City Environment and Natural

Resources Office (CENRO)

New City Government

Complex, Mac Arthur

Highway, Brgy. Karuhatan,

Valenzuela City

(02) 352 1000

LGU of Caloocan City,

City Environment and Natural

Resources Office (CENRO)

A.Mabini St., Caloocan

City

(02) 288 8810

website: emb.gov.ph

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