Handan -- about 400 kilometers south of Beijing -- is famous around China for having the same name for more than three thousand years. Well, the ancient city is now trying to make a name for itself in other ways. Heavily dependent on its steel industry up until very recently, its new policies are now attracting hundreds of high-tech companies. One of them has even helped a famous rice expert achieve a new world record for output. Our reporter Wu Guoxiu has more.

This chemical company is dubbed "the Silicon Valley of Hebei province". As its name indicates, it uses the compound organo-silicone to produce everything from oil-drilling equipment and weaponry to fertilizers. In fact, its founder, Song Furu, says their chemical fertilizers even helped China's 'Hybrid Rice Father' Yuan Longping set a new world record for output.

SONG FURU BOARD CHAIRMAN, HEBEI SILICON VALLEY CHEMICAL "The fertilizer is the fruit of ten years' research. We worked with Yuan Longping to improve his 'Super Hybrid Rice' output to 18.05 tons per hectare. A new world record which was set on October 29th this year."

Song says his fertilizers really improve the quality of soil, and reduce the heavy metals in crop products.

SONG FURU BOARD CHAIRMAN, HEBEI SILICON VALLEY CHEMICAL "While only 30 percent of normal fertilizers are absorbed by plants, 80 percent of our fertilizers are. We tested it in Inner Mongolia and Jilin Province, and it enabled white salt land to grow crops. We also helped to solve the problem of over-standard chromium in rice."

The fertilizers are being tested through pilot programs by China's Agricultural Ministry and some universities as a way to address ecological concerns.

WU GUOXIU BEIJING "The company helped make its surroundings into an ecological tourism attraction. The founder believes their contribution to Handan, is not only in paying taxes, but also in helping with both economic development and environmental protection."

Handan's huge steel industry is said to be a key contributor to its poor air quality. However, an official says the city now has nearly 400 high-tech companies, a small percentage among all, but the number is rising fast.

GAO YUNFANG DEPUTY DIRECTOR, HANDAN SCIENCE & TECHNOLOGY BUREAU "106 more new high-tech companies have been established this year. We have policies in place to support high-tech companies, making sure they have everything they need."

Meanwhile, back at Silicon Valley, Song is hoping his fertilizers can become even more potent and continue to regenerate the country's flagging soil and increase quality output. Wu Guoxiu, CGTN, Handan, Hebei province.