Harz Guss Zorge under new management

As part of its portfolio focus on the core business areas of recycling, green steel (in particular hot-rolled long products) and heavy forging, GMH Gruppe is selling the iron foundry Harz Guss Zorge GmbH (HGZ) from Walkenried in Lower Saxony. The company specialises in core-intensive, customised iron casting and is a development partner for well-known manufacturers in the construction equipment, compressor, railway and mechanical engineering sectors. HGZ employs almost 450 people and has been part of GMH Gruppe since 2000.

As part of a strategic process of focusing on the sustainable production and processing of steel, GMH Gruppe has been looking for a suitable investor for the iron casting business, which is no longer part of the core business. After an intensive search, it has found one: over the past three decades, US investor Hugh Aiken has already invested in and increased the profitability of several iron, steel and aluminium processing companies in the USA and Europe, including companies in Poland, France and Sweden.

‘We are delighted to be able to present Hugh Aiken, such an experienced investor, for Harz Guss Zorge,‘ explains Dr Alexander Becker, CEO of GMH Gruppe. “It is important to us to have found a strategic partner for our iron casting business, a ”best owner’ who brings extensive expertise from the European metal industry and can use it for the further well-being of HGZ GmbH and its employees.’

The purchase agreement between GMH Gruppe and Hugh Aiken was signed on 12 November and took legal effect on 21 November. It establishes the transfer of Harz Guss Zorge GmbH to the new owner with retrospective effect from 1 September 2024.

The seller, buyer and employees will strengthen the company's future financial position with contributions in the millions. Investor Aiken has set the goal of increasing productivity, improving technical processes, and deepening and expanding customer relationships. Aiken, who also speaks French and German, will initially take over the management of Harz Guss Zorge while a new managing director is sought for the company.

‘Competition in the metal business, especially with China and India, is fierce. Our interest must be to maintain know-how and manufacturing capabilities in the United States as well as in Europe, for both economic and security reasons,’ says Aiken, explaining his motivation for investing in the metal industry.

For the employees of Harz Guss Zorge, the new ownership means a stronger focus on the specific challenges of the foundry. These include reducing the carbon footprint, prioritising investments, optimising sand disposal and recycling, and implementing automation measures. At the same time, ongoing competition from low-wage countries in Asia and Turkey remains a key challenge.