The move to Caofeidian, which started in 2005, came at a huge cost for Shougang. The group had to forfeit nearly 1.4 million of steel output, or almost two thirds of its total output in Beijing, said Zhu. He also pointed out that the company never asked for any state subsidies and had to cover its losses itself. So far, losses from the relocation project have amounted to 2 billion yuan ($292.83 million) annually, he added.

But Zhu said he was confident about Shougang's future. According to company plans, the new production base in Caofeidian will boast an annual output of 8.98 million tons of iron, 9.7 million tons of steel and 9.13 million tons of rolled steel annually. The new plants would use 220 advanced domestic and international technological items to reduce their emissions by 75 percent, he said.

Zhang Weidong, who is responsible for the company's new iron smelting facilities at Caofeidian, said Shougang would recycle all its waste heat, waste water and solid wastes. For example, waste heat could be used to heat workshops and office buildings; wastewater could be reused after treatment; and solid wastes could be used to produce construction materials such as cement.

Zhang also said the new iron and steel production base in Caofeidian equals advanced world levels in terms of waste gas emission to minimal discharges of 0.3 kg of soot and 0.25 kg of sulfur dioxide for every ton of steel produced. The new plants also would be able to desalinate 20 million tons of seawater every year to meet half of their demand for industrial water.

Zhang pointed out that Shougang's relocation offered an opportunity for it to install and use new technologies. It also would save the company some transportation costs because of its proximity to sea freight carriers that could transport its products to other places. All this would give the company a clear edge over its competitors, he added.

In the meantime, the old No. 3 Steelmaking Plant might be turned into a museum, because Shougang is a symbol of the development of China's steel industry, said Wu. The No. 4 blast furnace, which was put into production in 1972 and produced 42.59 million tons of iron over the past 35 years, will also be preserved. According to a government plan, Shougang's disabled production facilities in Beijing will be turned into a cultural industry zone in a few years, Wu added.