Steel Giant in Beijing to Cut Output by 2 Million Tons

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Last updated at: (Beijing Time) Monday, February 04, 2002

Steel Giant in Beijing to Cut Output by 2 Million Tons

The Beijing-based Capital Iron and Steel Group announced Sunday it will cut its iron and steel output from eight million tons to six million this year. According to the company's development strategy, it will gradually change from steel production to cleaner areas such as high-tech industry, real estate and other service sectors. Environmentalists believe the move will result in cleaner air for Beijing.

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Iron & steel output cut

The Beijing-based Capital Iron and Steel Group, one of the major iron and steel producers in China, announced Sunday it will cut its iron and steel output from eight million tons to six million this year.

The company, also known as Shougang Group, will maintain its annual iron and steel output at the six-million-ton level from 2003 in line with its strategic shift to less polluting industries, said board chairman Luo Bingsheng.

Shougang Group, located in the western part of Beijing, has been the principal source of air pollution in the Chinese capital city.

Effort to contribute to Beijing's environment

Environmentalists believe the move will result in cleaner air for Beijing, which has suffered severe air pollution over the past few years.

Many firms with polluting emissions have been closed down or forced to cut the discharge of pollutants during the last few years as part of Beijing's effort to improve its environment.

According to the company's development strategy, it will gradually change from steel production to cleaner areas such as high-tech industry, real estate and other service sectors.

The company attained a sales revenue of 36.4 billion yuan (4.43 billion U.S. dollars) in 2001. Of the total, the sales income from non-steel business increased 2.62 percent year on year to 18.4 billion yuan (2.24 billion U.S. dollars), which, for the second consecutive year, was close to half the overall sales.

New high-tech products manufactured by Shougang Group include industrial robots and silicon chips.

Beijing's hosting of the 2008 Olympic Games has prompted decision makers in the capital to step up anti-pollution efforts.

As part of the efforts, Beijing has successfully encouraged residents and industrial sectors to use cleaner energy such as natural gas and electricity, and has introduced strict auto exhaust emission standards.

Shougang Group

Shougang Group is a trans-regional, transnational, multi-ownership and multi-trade giant enterprise group engaged in iron and steel mining, machinery, electronics, construction, real estate, service and foreign trade, etc.

Chinese Steel Giant Making Big Adjustments

Despite a lingering festive mood in Beijing, people from the Beijing-based Shougang Group feel more pressure than pleasure.

Luo Bingsheng, board chairman of the leading iron and steel producer in China, said 2002 is "very crucial" year with both challenges and opportunities ahead.

With China gradually phasing out the import quota system on steel products, Luo predicted domestic iron and steel companies have fierce market competition ahead.

To survive the challenges ahead, the management of the Shougang Group has mapped out three developing strategies for this year, hoping to build up its strength quickly. >>detailes

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