State-owned Hebei Iron and Steel struck a frame deal on March 19 to purchase 80 percent of Shijiazhuang Steel from CITIC Pacific for 1.9 billion yuan. Of the transferred shares, 65 percent is owned by CITIC and 15 percent comes from Zhongfu Investment, run by executives and employees of Shijiazhuang Steel who have hired CITIC as an agent of the deal. Hebei State-owned Assets Company, controlled by the Hebei State-owned Assets Supervision and Administration Commission, holds the remaining 20 percent of shares. CITIC decided to withdraw from Shijiazhuang Steel because of a mandatory decree requiring the mill to move out of the city proper for urban reprogramming and environmental protection.