China’a Hebei Iron & Steel Group has signed an alliance agreement with five domestic steel mills in a move that will boost its production capacity, the China Securities Journal reported.

The consolidation will add new production capacity of more than 10Mt to Hebei Steel, the newspaper said. Hebei Steel's new combined total capacity will surpass 60Mt, the paper said without giving a specific time frame.

Hebei Steel will hold a 10% stake in each of the companies.

Hebei Jingye Group and Tangshan Changcheng Iron & Steel are among the five companies involved, with all the mills located in North China’s Hebei province.