Companies told to halt production in northern Chinese city in anti-pollution drive

Reuters News
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Posted: Nov 21, 2016 10:23 AM

HONG KONG (Reuters) - About half a dozen listed Chinese companies, mainly in the pharmaceutical sector, have temporarily halted production in China's northern city of Shijiazhuang as part of a Chinese government anti-pollution drive, the companies said on Monday.

Shijiazhuang has suspended factory production in seven industries until the end of this year, affecting plants in the pharmaceutical, cement, foundry, iron and steel, coal-electricity, coking and boiler sectors, the companies said.

Companies including ENN Ecological Holdings Co Ltd and Jikai Equipment Manufacturing Co Ltd were told by the Shijiazhuang government to suspend production at their factories, they said in separate statements.

Several pharmaceutical companies, including CSPC Pharmaceutical Group Ltd, SSY Group Ltd, North China Pharmaceutical Co Ltd, received similar orders, according to their statements.

"The group has been actively cooperating with the government on environmental protection work and is making an application to the Shijiazhuang municipal government for permission to

continue its normal pharmaceutical production in Shijiazhuang," CSPC said in a filing to the Hong Kong stock exchange

China has been trying to tackle pollution over the past few years by implementing various measures to reduce the blankets of smog which shroud many of the country's northern cities in the winter and have been hazardous to health and traffic.

(Reporting by Lee Chyen Yee in Singapore and Meg Shen in Hong Kong; Editing by Adrian Croft)