Shougang cuts back Beijing plant production for Olympics

Shougang Steel, China’s second-largest steel manufacturer, has begun to scale back production at its Beijing facility in compliance with government emission-reduction requirements in the run-up to the Olympics this year. Shougang’s Beijing plant will reduce its output by 4 million tons this year, almost half of its current capacity, Xinhua Net reported (in Chinese). The move will reduce Shougang’s pollutant emisions by 70% during Olympics, while costing the company US$274 million and causing 60,000 employees to be either transfered or laid off, said Shougang president Zhu Jimin. The company will strengthen its business in non-steel-related fields such as electrical, construction and real estate to make up the losses, Zhu added.