BEIJING: China expects its top 10 steel makers to produce more than 60 percent of the country's total steel output by 2015, up from 44 percent in 2009, according to a document published on the government's website Thursday.

China is encouraging its big steel companies to acquire other smaller ones and restructure so to consolidate the steel industry. It aims to create three to five major steel companies that will compete in the international market, according to the document issued by the General Office of the State Council.

The plan is also part of the country's efforts to cut emissions through restructuring the steel sector, which has the "biggest potential" for emissions reductions, the document said.

The government said it would encourage domestic steel mills and iron ore firms to set up reliable iron ore bases overseas and for big steel companies to establish plants overseas.

The government would prohibit "blind investment" and "repetitive construction" in the steel sector, the document said, adding that as of the end of 2011 the government would not approve of any new steel projects that aim to expand capacity.

More efforts were needed to eliminate out-dated capacity, the document said.