Beijing authorities are still considering moving Capital Iron and Steel (Shougang Group) out of the city as part of its efforts to fight pollution.

Vice Mayor Ji Lin made the remarks during an inspection of the factory's boiler emissions on Monday, local media reported.

Ji, along with Wang Jirong, vice director of the State Environmental Protection Administration, surveyed the view from a high-rise on Monday morning and found the industrial base in the capital's western suburbs, where Shougang's plant is located, bristling with chimneys belching out thick clouds of smoke.

At the beginning of the year, the municipal government set a target to see at least 227 clear days out of 365, so that there should be blue skies 62 percent of the year -- Grade 2 or better on the air pollution index.

But by October 31 the city had only had 187 clear days, 40 days short, meaning that it is extremely unlikely the target will now be met.

Shougang is the largest single polluter in Beijing and local residents have long suffered the dirty air, said officials with the city's Environmental Protection Bureau.

"Shougang Group must be moved out of Beijing. The sooner the better. If not, the cost of pollution treatments will be much higher," said Wang. "We should not take care of the interests of some heavy polluters at the expense of the overall health of more than 10 million people living in Beijing."

As early as 1999, a dozen deputies from the Municipal People's Congress, Beijing's top legislative body, said Shougang must be moved because it heavily pollutes both air and groundwater.

Late last year, Lu Hao, another vice mayor of Beijing, made the first official statement on the subject, saying that Shougang would be entirely moved out by 2012.

However, the company's executive argued that the huge costs involved, loss in fiscal revenue and of up to 100,000 jobs made the move unfeasible.

Although relocation is complex, Shougang has been gradually moving part of its plants out of the city.

Construction of its new steel production base was finished in October in neighboring Hebei Province, with an annual production of 2 million tons. Of course, if this reduces pollution in Beijing it also increases it in Hebei.

Shougang also cut its annual production to 6 million tons from 8 million last year and plans to cut a further 2 million before 2008 in a bid to reduce emissions.

Air pollution, which often shrouds Beijing in a soupy smog, is a key concern for decision makers.

(China Daily November 17, 2004)