Another German OEM closes its doors: KMS Gesenkschmiede Solingen plant put up for sale

KMS Gesenkschmiede, a recognised specialist in high-precision forged components, has initiated the sale of its drop forging and machining facility in Solingen, appointing KRUDO to manage the transaction.

The decision forms part of a broader restructuring effort as the German and European forging industries face sustained economic and structural pressures. For many years, KMS Gesenkschmiede supplied fully automated, high-precision forged components with complex geometries to a wide range of industrial customers, including major automotive manufacturers such as Audi and Volkswagen.

Located in Solingen, historically regarded as the heart of German forging expertise, the facility represents a highly advanced industrial platform. It combines multiple automated forging lines with extensive machining and toolmaking capabilities, including equipment installed as recently as 2023. Over the years, the site has enabled the production of first-class quality components meeting the most demanding technical standards, reflecting a long tradition of German engineering excellence.

According to KRUDO, the sale has already attracted strong interest from manufacturers outside Europe, notably from India, Türkiye and other Asian markets, seeking to acquire complete production setups. Commenting on the transaction, Sivakumar Krishnaprasad, Country Head of KRUDO India, highlighted the exceptional technical level of the facility, noting that it was designed to manufacture some of the most complex hot-forged components using state-of-the-art machinery combined with German engineering know-how. At the same time, all machinery and equipment remain available for sale either as a complete package or in partial lots, offering flexibility to potential buyers.

The sales process is expected to be completed by the end of the first quarter of 2026, enabling the removal and relocation of machinery by the end of the year. KRUDO’s role includes buyer matchmaking and the facilitation of the end-to-end relocation of German-engineered equipment to its new destination.

Beyond the transaction itself, the closure of yet another German forging site underscores the growing challenges facing Europe’s manufacturing base. While the technological assets remain highly attractive on a global scale, their potential relocation outside the European Union raises pressing questions about industrial competitiveness, supply chain resilience and the long-term preservation of strategic manufacturing capabilities in Europe.

Source: krudoind.com