Special report: 2008 Olympic Games
BEIJING, July 11 (Xinhua) -- Beijing Shougang Group, one of China's leading
steel makers and the capital's major polluter, is fulfilling its commitment to
cut output and pollution by 70 percent for the Olympic Games, a company source
The Beijing plants of the group have slashed monthly production to 200,000
tonnes in the third quarter, said the group's president Zhu Jimin. "This is
about 29 percent of our normal output."
Through June, Shougang had extinguished the fires in three of its four
blast furnaces at its Beijing plants.
These plants, which formerly produced 8.2 million tonnes of steel a year,
would almost halve their output this year to 4.2 million tonnes, before all
their Beijing production was stopped by2010.
This year's output cut will put the group's Beijing plants in the red and
slash the group's annual profits by at least 2 billion yuan (285 million U.S.
dollars), Zhu said.
He said the losses would hopefully be offset by the group's new steel
projects, notably its new plant in Caofeidian, an islet in the neighboring Hebei
Province that will turn out 4.85 million tonnes of steel a year after its first
phase starts operation in October. In two years, the new plant will be producing
up to 10 million tonnes a year.
Meanwhile, Shougang's new cold rolling mill in Shunyi District in
northeastern Beijing is producing 1.5 million tons a year.
"We'll also exploit our advantages in other sectors," Zhu said. These will
include tourism, entertainment and other tertiary industries.
After the relocation, the old factory site in western Beijing will be
developed into a complex for tourism and entertainment, cultural business, and
commercial and residential compound with an expanded area of 856 hectares from
"We'll be responsible for our shareholders and will protect their practical
and long-term interests," Zhu said.
Shougang's efforts will hopefully pay off with pollution cuts, as it plans
to reduce emission of sulfur dioxide, soot and dust by49.18 percent, 50.32
percent and 49.22 percent, respectively, this year.
Further output cuts in the third quarter will hopefully bring down
emissions of the three major pollutants by 70 percent compared with last year,
Founded in 1919, Shougang is widely considered the flagship of China's
heavy industry. With its production base just 17 km west of Tian'anmen Square in
central Beijing, it has long been blamed for causing heavy pollution as the
plant's chimneys belch out thick clouds of smoke.
As one of the efforts made by the Chinese government to improve Beijing's
air quality, Shougang Group began in 2005 to relocate its facilities to Hebei
Province about 200 km east of Beijing.
Shougang has promised its new facility would use advanced technologies to
reduce environmental impact.