DESCRIPTION
Founded in 2002 and listed on the Korean stock exchange (KOSDAQ) since 2016, Great Rich Technologies Limited (GRT, or the Company) is the second-largest manufacturer specializing in functional coating composite materials in China.
Having established three production facilities in China, GRT is constructing its first overseas manufacturing base in Türkiye. This move aims to enhance its capacity to produce energy-saving and emission-reducing film materials, catering to the increasing global demand for such materials that help reduce energy consumption and greenhouse gas emissions. These innovative film materials will play a crucial role in reducing carbon footprints in GRT’s targeted markets such as Europe, the Middle East and Türkiye, while facilitating technology transfer through localized production.
The proposed GRT Climate Facility (the Project) aims to finance the establishment of GRT’s first manufacturing facility abroad, to be situated in Kırklareli, Türkiye. This new plant will produce primarily energy-saving window films, materials for carbon capture and storage purposes and volatile organic compounds (VOCs) adsorption materials, along with other products, such as paint protection films.
International Finance Corporation of the World Bank Group (IFC) is expected to be a co-financier.
ENVIRONMENTAL AND SOCIAL INFORMATION
Applicable Policy and Categorization. The Project is governed by AIIB’s Environmental and Social Policy (ESP), including the Environmental and Social Standards (ESSs) and the Environmental and Social Exclusion List (ESEL). ESS 1 (Environmental and Social Assessment and Management) is applicable to address the Project’s environmental and social (ES) risks and impacts. ESS 2 (Involuntary Resettlement) is not triggered, as the Project will not result in involuntary resettlement. ESS 3 (Indigenous Peoples) is also not applicable, as no communities meeting the ESS 3 definition of Indigenous Peoples are present in the Project vicinity. The Project is classified as Category B as it will have (a) general ES impacts and risks that are minor and localized, (b) impacts that are expected to be reversible and temporary in nature and (c) impacts that can be effectively managed using practical and established mitigation measures.
Environmental and Social Instrument. The Environmental and Social Impact Assessment (ESIA) incorporates an Environmental and Social Management Plan (ESMP), which has been prepared for the Project. Additionally, a Project-specific Environmental and Social Management System (ESMS) will be established by the client to systematically manage the ES risks and impacts. An Environmental and Social Action Plan (ESAP) reflecting the requirements of the AIIB ESP has also been developed.
Environmental Aspects. The Project is proposed within an established Organized Industrial Zone (OIZ) with existing utilities and waste management infrastructure, and the Project area is not a part of any critical habitat and does not have any protected natural areas in the immediate surrounding. Construction-stage wastewater will be managed in accordance with the ESMP, which includes pretreatment arrangements and protocols for handling untreated wastewater. Operational wastewater will be treated at the OIZ’s common wastewater treatment plant (WWTP) in accordance with Türkiye’s environmental standards. Following initial treatment, wastewater will be discharged to the OIZ’s common WWTP. During operation, the facility is expected to generate volatile organic compounds (VOCs) from solvents, adhesives, and coating processes. The Project is proposed to install a Regenerative Thermal Oxidizer (RTO) with heat recovery, designed to achieve up to 99% VOC abatement in compliance with Industrial Air Quality Control Regulations while improving energy efficiency and reducing fuel-related emissions. In addition, the Project is also expected to generate hazardous wastes, including chemical residues, spent catalysts, metal compounds, VOC residues, and batteries, necessitating robust segregation, storage, transport, treatment, and disposal procedures in line with good international industry practice. The potential construction- and operation-phase impacts (noise, air emissions, and dust) will be managed through comprehensive ESMP covering, inter alia, topsoil protection, chemical handling, spill prevention and response, waste management, and environmental monitoring.
Social and Gender Aspects. The client acquired the land for the Project from a commercial entity that had held the plot for over a decade, during which time it remained idle. The ESIA surveys and stakeholder consultations confirmed that no physical or economic displacement is anticipated, and no legacy land-related issues were identified. Key social risks associated with the Project include community health and safety, labor and working conditions and occupational health and safety. An ESMP has been prepared to address these risks. Additionally, the client will establish and operationalize an ESMS, to systematically manage the E&S risks and impacts throughout the Project lifecycle. To mitigate risks of sexual exploitation and abuse (SEA), sexual harassment (SH), and gender-based violence (GBV) in the workplace, the Project has developed and will implement a Code of Conduct explicitly prohibiting SEA, SH and GBV.
Occupational Health and Safety, Labor and Employment Conditions. Occupational Health and Safety (OHS) risks associated with the Project arise from exposure to rotating/moving equipment, noise, vibration, electrical hazards, chemical handling, and working at heights. The related risks have been assessed by ESIA. To address these risks, the Project has prepared an OHS Management Plan including control measures. Additionally, an Emergency Preparedness and Response Plan (EPRP) has been developed to ensure systematic responses to potential incidents.
Stakeholder Engagement, Consultation and Information Disclosure. During the preparation of the ES instruments, the Project conducted consultations with key stakeholders. A Stakeholder Engagement Plan (SEP), as part of ESMP, has been prepared to guide activities throughout the Project cycle. The ES instruments have been disclosed on both client’s[1] and the Bank’s websites[2].
Project Grievance Redress Mechanism (GRM) and Monitoring Arrangement. Two GRMs have been established to receive, acknowledge, evaluate, and resolve complaints related to E&S issues. The first GRM is designed for external stakeholders, and the second GRM is dedicated to Project workers. Records of grievances received, corrective actions taken, and their outcomes will be properly documented and maintained. The information about established GRMs and Bank’s Project-affected People's Mechanism (PPM) will be disclosed in an appropriate and timely manner. The EPC contractor will be responsible for the day-to-day implementation of ES management plans during the construction phase, while the client will oversee compliance through its ESMS. The client will prepare annual ES monitoring reports in an agreed format and submit them to AIIB for review. AIIB will undertake site supervision missions as necessary to monitor Project compliance with applicable ES requirements.
[1] http://kr.tonglioptech.com/article/type/6-1.html#fazhan
[2] https://www.aiib.org/en/projects/details/2026/approved/turkiye-grt-climate-facility.html
