Vietnam Steel Corp. has completed the sale of its entire 65% stake in subsidiary Vicasa Steel to a domestic investor amid a production halt at Vicasa.

Vietnam Steel sold 9,871,875 shares in Vicasa for Dong 126.3 billion ($4.8 million), according to an exchange filing published Oct. 20.

The divestment comes following disruptions at Vicasa’s operations. The company has suspended its production activities for over three months, and its shares have been placed under “warning status” in the Ho Chi Minh Stock Exchange.

Authorities previously did not issue an environmental permit for Vicasa Steel after the Dong Nai province ordered Vicasa’s relocation from the Bien Hoa 1 Industrial Park over waste issues.

Vicasa had said the relocation has impacted its production activities, “making it difficult for the company to achieve its 2025 business and production targets,” it said in July.

Vicasa previously set a 2025 production guidance of 150,000 mt of steel and 105,000 mt of rolled steel, both up from 2024’s production of 103,498 mt of steel and 81,843 mt of rolled steel.