"Shougang will cut its production up to 70 percent during the Beijing Olympic Games," Zhu Jimin, delegate to
the 17th National Congress of the Communist Party
of China and President of the Shougang Group revealed to
China.org.cn on October 22. "We will do our best to support the
success of the Olympics."
Shougang, a former major steel producer in the capital, has been
relocated to Tangshan, a neighboring industrial hub.
"We have made great efforts to curb pollution for ten years.
Shougang now takes the lead in the world on environmental
protection. Shougang voluntarily decided to cut production during
the Olympics to show the world that China is a country with
responsibility and Beijing is a city that keeps promises," Zhu
"Our company previously had an annual steel production of 8
million tons in Beijing. Starting from the next year, we will lose
profits of more than 2 billion yuan (about US$267
million) annually. This is our biggest loss. But thanks to the
relocation, we have a new steel company with great potential. We
have the opportunity for development."
The first phase project of the new Shougang base will start
production in October, 2008. In 2010, the most advanced steel
company with production capability of tens of thousand tons will be
The relocation brings a bright future to the company,
particularly its listing on the Hong Kong exchange. The market
value has increased to 40 billion yuan from 2 or 3 billion yuan in
(China.org.cn by Li Xiaohua October 23, 2007)