Baosteel Group plans to raise annual crude steel production capacity by nearly 70 percent over the next five years, the company said Monday.

China's second-largest steel mill targets an annual capacity of 50 million tons by 2012 and more than 66 million tons by 2015, compared with 38.9 million tons last year, it said in its next six-year plan posted on its Website.

Rapid output capacity by China's leading steel makers prompted Baosteel's ambitious plan. Last year, five Chinese mills were among the top 10 steel makers globally. Baosteel ranked third, following ArcelorMittal and Heibei Iron and Steel Group.

Last week, Anshan Steel Group said it planned to raise its annual crude steel capacity to 60 million tons in the next five years.

However, Anshan Steel projected the Chinese steel industry will face low profitability and slow growth amid severe overcapacity, higher raw material prices, growing competition and rising protectionism.

Baosteel said it will actively seek mergers and acquisitions, explore overseas markets and optimize assets.

"At present, acquisitions are more about enlarging the company size. But the focus will shift to enhancing its cost competitiveness," the company said.

Baosteel will also step up efforts to secure raw material supplies in resource-rich regions. It is mapping out plans to build manufacturing facilities overseas.