Bottled water company Nongfu Spring said yesterday it had decided to cease production of barreled water in Beijing permanently following a temporary suspension order imposed by the capital's quality watchdogs in a dispute over standards.

The company said that nearly 100,000 residents in the city who had prepaid would be given five 4-liter bottles of its water produced in other provinces instead of their usual 19-liter barrel. A 19-liter barrel cost 20 yuan (US$3.2) while five 4-liter bottles cost 35 yuan.

"Nongfu Spring decided not to cause a loss to our customers or to lower our head to media attacks," Zhong Shanshan, the company's CEO and board chairman, told a press conference in Beijing. "We can't produce water under such circumstances."

Production of 19-liter barrels was suspended on April 20, the Beijing Times said, after the newspaper had raised questions about the company's quality standards.

Following the reports, Beijing quality watchdogs began an investigation into Nongfu Spring and temporarily suspended its production in Beijing for not applying national standards.

Zhong said the company didn't follow national standards but those of Zhejiang Province, where the company is based, because they were stricter. "The standard of Zhejiang, DB33833, covers 57 criteria while the one of Fujian Province covers 28, Hunan Province 37, Chongqing 25, Guangdong Province 40," Zhong told reporters. "Currently, DB33833 is still a leading standard in China."

He said the Ph of Nongfu Spring was controlled at between 6.8 and 7.8, which was also stricter than most standards in China.

The Beijing plant made a profit of 4.2 million yuan last year while this year it was estimated the figure would reach 5 million, Zhong said. "We believe justice and dignity are more important than money."

Production of other Nongfu Spring products was not affected.

Meanwhile, the company has filed a lawsuit against the Beijing Times claiming 60 million yuan compensation for criticism of the company which it had been carrying for almost a month. The company believed its reports had seriously damaged its reputation.

Zhong said the Beijing-based newspaper had used 67 pages to repeatedly criticize Nongfu Spring but only raised three issues - claims that company's standards were lower than those for tap water, calls for the abolition of Zhejiang quality standards and the suspension of barreled water production in the capital.

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