Beijing's Shijingshan District, once considered a major polluting area in the city, yesterday officially announced it is building itself into a capital recreation district (CRD).

The district, 30 kilometers west of Beijing's central business district (CBD), took hold of this "green development opportunity" when it was announced Shougang Group would be relocated out of the area, said Bejing Vice-Mayor Zhang Mao at yesterday's summit on the recreation economy and creation industry in the capital.

The central government has decided to move Beijing's largest enterprise Shougang, also known as Capital Iron and Steel Group, from Shijingshan to Caofeidian Port in Hebei Province by 2010.

The district has already started projects at the 8-square-kilometre site previously occupied by Shougang, such as an international sports and restaurant square, an indoor water recreation centre, a large shopping mall, a villa and residential park, an international statue park and an exhibition and event zone.

"The industrial shift not only fits orientation of the Chinese capital but also can offer more job opportunities for those workers laid off by the relocation of the company," said Wang Qinghai, general manager of Shougang at yesterday's summit.

The State Council designated Beijing as "China's political and cultural centre" last year, after it approved the Chinese capital's new urban planning blueprint, to be completed by 2020.

Hou Yulan, governor of the district, said at the summit that Shijingshan aimed to attract more than 30 billion yuan (US$3.7 billion) investment within five years to develop digital recreation, information technology (IT), tourism industry, shopping, exhibitions and office space.

"All the development will totally change the image of Shijingshan, which used to be a major polluting source of the capital," said Hou.

Already more than 90 IT and recreation companies have established their offices in Shijingshan to develop animation and digital productions.

Hou said he believed that domestic and foreign investors will soon move to the district, as Shijingshan is expected to become increasingly environmentally friendly.

Vice-Mayor Zhang said the industrial restructuring is helpful to promoting the contribution of cultural and creational products to its economic development.

"The cultural and creational products will become pillar of Beijing's economy in the coming years," said Ding Xiangyang, director of Beijing Municipal Commission of Development and Reform, at the summit.

Ding predicted that the cultural industry in the Chinese capital will produce 66 billion yuan (US$8.25 billion) in added value by 2010, up from 50 billion yuan (US$6.25 billion) in 2008 and 24.6 billion yuan (US$3 billion) in 2003.

(China Daily May 30, 2006)