CHINA would encourage mergers and restructuring in the steel sector to help forge three to five producers with sharp international competitiveness, the Ministry of Industry and Information Technology said in a statement on its Website yesterday.

Six or seven steel producers will be encouraged to implement strategic mergers and restructuring across the country, according to the Guideline to Promote Steel Sector Mergers and Restructuring.

The guideline was made to tackle the domestic steel sector's structural problems such as low industry concentration and high percentage of backward production capacity, the statement said.

The ministry also mapped out Steel Sector Admittance Requirements. It intends to regulate steel enterprises through enforcing standards on product quality, environmental protection, energy consumption, use of resources and production scale.

The ministry will publicize a list of enterprises that meets these standards.