GMH Gruppe’s Harz Guss Zorge iron foundry under new ownership as US investor Hugh Aiken takes over 100% of the shares through SEKCO Operating Company

GMH Gruppe is divesting the iron foundry Harz Guss Zorge GmbH in Walkenried in Lower Saxony, as it focuses its portfolio on the core business areas of Circular Economy, Green Steel (especially hot-rolled long products) and Heavy Forging. Harz Guss Zorge (HGZ) specializes in core-intensive, customized iron castings and is a development partner for well-known companies in the compressor, railroad, construction equipment and mechanical engineering sectors. HGZ employs almost 450 people and has been part of the GMH Group since 2000.

In the course of a strategic process of consolidation regarding the sustainable production and refining of steel, GMH Gruppe looked for a suitable investor for its iron foundry, which no longer fit its core business activity, and was successful after a period of intensive searching. The US investor Hugh Aiken has already invested in several iron, steel and aluminum processing companies in the USA and Europe over the past three decades, including sites in Poland, France and Sweden, and, in doing so, has increased their profitability.

"We are delighted to be able to present such an experienced investor for Harz Guss Zorge in Hugh Aiken," explains Dr Alexander Becker, CEO of GMH Gruppe. "It is important for us to have found a strategic partner for our iron casting business, a so-called 'best owner' who brings with him extensive experience from the European metal industry and can utilize this for the continued well-being of HGZ GmbH and its employees."

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

The seller, buyer, and employees will each contribute millions to strengthen the company’s future financial position. The buyer aims to enhance productivity, optimize technical processes, and deepen and expand customer relationships. Investor Aiken, who also speaks French and German, will initially take over the management of the new company during the search for a general manager for HGZ.

"Competition in the metal business, especially with China and India, is tough. It must be in our interest to maintain the expertise and production capacities in the United States and Europe, both economically and in terms of security policy," says Aiken, explaining his motivation for investing in the metal industry.

For the employees of Harz Guss Zorge, the new owner brings a more foundry focused orientation to the challenges facing HGZ, which include carbon footprint, investment priorities, sand disposal and recycling and automation, in addition to continuing low cost country competition from Asia and Turkey.