Located 80 kilometers south of Tangshan City and embraced by the Baohai Economic Circle, Caofeidian is surrounded by seven provinces and cities including Beijing, Tianjin, and Hebei. As the new site of the Shougang Group, Caofeidian will soon be transformed into a world-class iron and steel production base.

The site is rich in natural resources, boasting 4.4 billion tons of iron ore and 5 billion coal reserves. A recently discovered oil field with a reserve of 1 billion tons will also boost the development of the area.

This project is possible due to joint efforts made by Shougang and Tanggang (Tangshan Iron and Steel Group), who hold respectively a 52 percent and 46 percent stake of the investment, totaling 67.731 billion yuan. Officially named Shougang Jingtang Iron and Steel Co. Ltd, it was established on October 22, 2005.

The construction work was inaugurated on March 12, 2007, and is quickly making progress. The initial phase of the production capacity will yield estimated 9.89 million tons of iron, 9.7 million tons of steel, and 9.05 million tons of rolled steel. In 2008, half of the designed capacity is expected to be completed and in 2010 the plant will be fully put into operation.

The main task of construction includes two 5,500-cubic-meter blast furnaces, two 300-ton converting furnaces, 2,250-millimeter and 1,580-millimeter hot rolling mills, 1,700-millimeter and 1,550-millimeter pickling cold rolling mills, together with a 250-thousand-ton ore wharf. The new site has adopted a batch of cutting-edge facilities and technologies that will make new Shougang the flagship in the industry in China .

Guided by the concept of a recycle economy, the new Shougang uses the most advanced pollution treatment system with leading emission standards to minimize pollution. Due to the construction of a power plant, industrial salt plant, and cement plant, residual heat, voltage, air and wastewater, steel-containing and solid waste are recycled, contributing to achieving zero emissions and paving the way for exploiting a new development pattern. The environment appraisals of relocation and new projects approved by the country's environmental watchdog ensure that 99.5 percent of the solid waste and 97.5 percent of wastewater are recycled.

The construction of the new site will bring new blood to the development of Shougang and Tanggang, facilitate the transfer of the growth pattern of the steel industry, and propel the harmonious and sustainable development of Bohai Bay. In addition, Caofeidian has opened up a new tourist route, mainly displaying the new look of the modern enterprise. At the same time, the tourists can pay a visit to the top-notch harbor and surreal landscape carved out of the sands, as well as coastal scenery and nearby wetlands.

(China.org.cn July 10, 2007)