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Steel giant Shougang to cut production during Olympics
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"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 said.

 

"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 completed.

 

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 2001.

 

(China.org.cn by Li Xiaohua October 23, 2007)

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