South Korea’s Posco Group sold its Chinese stainless steel subsidiary, Zhangjiagang Pohang Stainless Steel (PZSS), for over 400 billion won ($290 million). This marks the start of Chairman Chang In-hwa’s efforts to restructure the business by offloading non-core and unprofitable units to invest more aggressively in future growth sectors.

According to industry sources on Wednesday, Posco Holdings signed an agreement on July 3rd 2025, to transfer its 82.5 percent stake in PZSS to Chinese steelmaker Tsingshan Group. Chang and Tsingshan Group Chairman Xiang Guangda were present at the deal signing.

Founded in 2002 as Posco’s foothold in China, PZSS has an annual production capacity of 1.1 million tons - more than half of Korea’s total stainless steel output. However, a growing supply glut driven by China’s steel self-sufficiency strategy has significantly eroded the subsidiary’s profitability.

PZSS posted 3.04 trillion won in sales in 2024 but suffered a net loss of 129.9 billion won.

The sale is part of a broader restructuring initiative launched by Chang, who began his tenure in 2024 by identifying 125 low-profit assets for divestment as Posco sharpens its focus on next-generation growth businesses.

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