China’s northern city of Tianjin plans to merge its four state-owned steel mills into a group with annual capacity of about 23 million tons, Reuters reported, citing a report in the China Business News. China has urged steel mills to consolidate. The state-owned asset management body of the coastal city near Beijing plans to establish a steel group to control the four existing mills, similar to steel sector consolidations in the provinces of Hebei and Shandong. According to a company official, the four companies are Tianjin Tiantie Metallurgical Group, Tianjin Tiangang Steel Group, Tianjin Steel Pipe Group and Tianjin Metallurgical Group. The state-owned parent of Tangshan Iron and Steel merged last year with two smaller rivals to become the country’s second-biggest steel mill, Hebei Iron and Steel Group. The new company now ranks among the world’s top five steel producers.