Shougang Group may be moved out of Beijing

Shougang Group may be moved out of Beijing

Chinese iron and steel giant Shougang Group is likely to be moved out of Beijing as a part of state measures, which aim at eliminating the problem of air pollution. Industrial base is stated to be the main reason behind the pollution in Beijing. It is stated that many people suffered from the pollution in the city. As a result of the investigation conducted, it has been found that the most polluted part in the city is the area where Shougang Group is located and the company heavily pollutes both air and groundwater. Beijing Municipal Environmental Protection Bureau officials stated that unless Shougang is moved out of Beijing, cost of pollution treatments will increase further. It was announced by Beijing governorship that the removal of the steel group would be completed by 2012. However, the company officials announced that they are worried about the cost of removal, which is estimated to be Yuan 40 billion ($4.8 billion), the effects of removal on city's industries and the problem of unemployment. Shougang Group reduced its production to 6 million tons from 8 million tons in 2003 and plans to reduce by 2 million tons by 2008 in order to reduce pollution.