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January 14, 2011

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Shougang closure ends an era

SHOUGANG Group, a leading heavyweight steel maker in China, yesterday announced it had halted all its steel-making operations in Beijing amid efforts to cut air pollution in the capital.

A shutdown ceremony was held yesterday morning in Shougang's Shijingshan site in west Beijing, marking the end of the company's plant that was founded almost a century ago and had an annual production capacity of 8 million tons.

That also means Shougang had reduced air pollutants it had discharged into the capital's sky from the maximum of 9,000 tons a year to zero now.

"We fulfill our solemn commitment to the nation and the people," Zhu Jimin, board chairman of Shougang, told the ceremony.

The mill has built a 21-square-kilometer new plant in Caofeidian, an islet 220 kilometers east of Beijing in Bohai Bay, to replace the old facilities.

China has encouraged steel makers to build factories in coastal areas to take advantage of ports to minimize the purchasing cost of iron ore.

Vice Premier Zhang Dejiang attended yesterday's shutdown ceremony, saying the relocation was significant as it is the first steel maker to have moved from a big city to a coastal area.

"The relocation has strategic significance in promoting the restructuring of the iron and steel industry, and transformation of urban functions," he said.

"It is also an important move for China to accelerate the transformation of economic development mode," he said.

Founded in 1919, Shougang once hit a record of 10 million tons of annual output.





 

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