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(ECNS) -- A state-owned key enterprise has moved from Beijing to Hebei province, the first since the government rolled out plans to integrate Beijing and neighboring areas in February, the Beijing News reported.
The Xinxing Cathay International Group, supervised by the State-owned Assets Supervision and Administration Commission (SASAC), has relocated its subsidiary Beijing Lingyun Building and Chemical Materials company in Fengtai district to an industrial complex in Wu'an, Handan.
Chen Hongzhi, the vice president of the enterprise, said their business had been influenced after the group's other subsidiary stopped producing lime in 2012, as they need its byproduct, carbon dioxide, as a raw material.
The move has aroused concerns about adding pollution to Hebei, but the environmental bureau of Beijing's Fengtai district said emissions from the enterprise have met national standard in the past. Moreover, it will help to cut carbon emissions in Hebei, as it makes use of carbon dioxide emitted by local steel enterprises.
With the upgrading of production facilities, the company will also save 5.29 tons of coal, said Wu Shenfu, an official of Fengtai district.
Altogether 100 of 134 employees have agreed to work in Handan, with their social insurance accounts remaining in Beijing, he added.
Beijing will relocate some of its non-core functions to nearby cities. President Xi Jinping called for a coordinated development of the region around Beijing during a seminar on February 26.
The National Development and Reform Commission is now working on a blueprint of a plan for Beijing, Tianjin and Hebei province to form a regional bloc.
To achieve integrated and collaborative development of the capital economic circle, the governments of Beijing, Tianjin and Hebei province have finished the first draft of development planning and will submit it to the State Council for deliberation.
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