Xinhua reported that Beijing Shougang Group is fulfilling its commitment to cut output and pollution by 70% for the Olympic Games.

Mr Zhu Jimin president of Shougang Group said the Beijing plants of the group have slashed monthly production to 200,000 tonnes in the third quarter. He said that "This is about 29% of our normal output."

Mr Zhu said this year's output cut will put the group's Beijing plants in the red and slash the group's annual profits by at least CNY 2 billion. He said that the losses would hopefully be offset by the group's new steel projects, notably its new plant in Caofeidian, an islet in the neighboring Hebei Province that will turn out 4.85 million tonnes of steel a year after its first phase starts operation in October. In two years, the new plant will be producing up to 10 million tonnes a year.

Mr Zhu said "We will also exploit our advantages in other sectors. These will include tourism, entertainment and other tertiary industries. He said that we'll be responsible for our shareholders and will protect their practical and long-term interests."

He added that further output cuts in the third quarter will hopefully bring down emissions of the three major pollutants by 70% compared with last year.

Shougang founded in 1919 is widely considered the flagship of China's heavy industry. With its production base just 17 kilometer west of Tian'anmen Square in central Beijing, it has long been blamed for causing heavy pollution as the plant's chimneys belch out thick clouds of smoke.