Shougang to move production to Hebei
Citing environmental pollution concerns,
China's fourth largest steel maker, Beijing Shougang Group, sketched out a plan to move it most polluting plants to a neighboring province by 2010.
Shougang's plan entails the establishment of a new base of operations in Hebei Province. The
production facility will be built on a 20 km2 area on Caofeidian Island, 80 km offshore of Hebei Province. The facility is expected to have an annual
production capacity of eight million tons.
Shougang's headquarters will remain in Beijing.
Shougang reported post-tax income of Yuan 1.25 billion (about $150 million) in 2004, 21.6% higher than the previous year. Income from sales totaled Yuan 61.9 billion ($7.46 billion) last year, a 39.9% increase.
The Chinese cabinet approved the future layout of the company, and the company may benefit from some tax privileges due to the restructuring.