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China's National Development and Reform Commission (NDRC) has approved the construction of the Jingtang Iron and Steel Project, it announced on Thursday.

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Beijing-based steel giant Shougang is relocating to the neighbouring Hebei province and setting up a new joint venture with Hebei-based Tangshan Iron and Steel Group, named Shougang Jingtang Iron and Steel Corp.

Shougang would shut down a production capacity of eight million tons of iron and steel in Beijing, while 7.3 million tons would be eliminated in Hebei province.

"The approval signals the complete start-up of Shougang Jingtang Iron and Steel Project," said officials with the NDRC, adding investment on the project would reach 67.7 billion yuan.

The project is expected to produce 8.98 million tons of pig iron, 9.7 million tons of steel and 9.13 million tons of rolled steel, sources said.

The relocation of Shougang, long branded the capital's worst polluter with chimneys belching out thick clouds of smoke, is a major step towards solving the city's chronic air pollution problems.

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