China will step up efforts to consolidate its steel industry in the next five years.

Officials said the move will focus on industrial layout adjustment and industrial upgrading, the China Securities Journal reported Tuesday.

The industry will see the formation of about 100 regional steel groups by 2015, according to officials from the National Development and Reform Commission (NDRC) and the Ministry of Industry and Information Technology (MIIT).

Related readings:  Steel industry to face tougher times in 2011  Steel industry plan forged  Sagging profits drive steel sector reforms  Steel industry outlook still hazy

The specific strategy is to cut capacities in the northeast, north and east regions of China, phase out and upgrade obsolete capacities in the central, south and southwest parts. Finally, efforts would be made to develop new capacities in the western areas.

The MIIT said the main task for the steel industry in the next five years is mergers and acquisitions. It aims to increase the capacity of the top ten steel groups from 48 to 60 percent of the national total and foster three to five groups with international competitiveness. China now has more than 2,000 rolling mills.

The NDRC said some steel mills will be relocated to adjust the industrial layout. Western regions with rich resources and costal areas with convenient export facilities are possible destinations.