New Shougang built in the Caofeidian area of Tangshan, Hebei province says it has made great contributions to the improvement of air quality in both Beijing and Tangshan as it has continued its steel manufacturing projects.
To ensure air quality in Beijing, especially during the Beijing Olympic games, in 2005 key polluting enterprises including Shougang Group were listed in the adjustment and moving plan by the Beijing Municipal Government. Shougang and Tangsteel Group jointly formed Shougang Jingtang Steel Co., Ltd also known as New Shougang in the same year, indicating the beginning of Shougang Group's relocation.
During the Olympics, Shougang will suspend its major steel production business in Beijing, and will stop all its production in 2010. While Hebei province where the New Shougang is located has closed down 35 small sized steel companies of high pollution, with total annual production capacity of 7.3 million tons.
