Wuhan Iron and Steel Group (Wugang), China's third-largest steel maker, plans to increase production by 24 percent next year as demand recovers amid the reviving economy, China Daily reported Saturday citing the company's statement.

Wugang expected to produce 37.9 million tonnes of crude steel next year, up from a forecasted 30.5 million tonnes this year, and it raised revenue expectation by 11 percent to 150 billion yuan (22 billion U.S. dollars) in 2010, according to the statement.

China's 4-trillion yuan stimulus package has helped domestic steel makers return to profit in May after seven straight months of losses because of the global economic crisis.

Steel consumption might rise by 10 percent next year due to a stronger demand boosted by a 28-percent-increase in assets investment in 2010, Yu Liangui, a senior analyst from Mysteel, was quoted as saying.

"The government's plan to restrict entry for small steel makers gives ample room for large steel mills to expand production," according to Yu.

The Ministry of Industry and Information Technology earlier this month said it would be mandatory for steel mills to have at least 1 million tonnes of capacity, a move that could squeeze small steel mills out of the market and speed up the pace of industry consolidation.