Insolvency shock in Hagen: Urban Industries is fighting for survival!

Insolvency shock in Hagen: Urban Industries is fighting for survival!

Urban Industries GmbH from Hagen, specialist for armored steel, filed for bankruptcy on April 3, 2025. The application was published by the district court of Hagen under file number 106 in 36/25. Managing Director Felix Urban was surprised by this step, which he considered unexpectedly. He was convinced that the company was on a successful course, especially after his takeover of his father and uncle in 2021 and the subsequent quick growth.

Urban Industries, founded in 1981 as a locksmith and entered the armaments industry in 2004, had over 40 years of experience in the field of metal processing. Despite the boom potential in the armaments industry, the hoped-for upswing failed to strengthen the Bundeswehr due to the lack of orders from the 100-billion euro special program. Urban complained that this program has so far "not arrived". In addition, an unpaid invoice for an important customer led to a significant financial imbalance.

bankruptcy and its causes

Around 80 employees are currently employed at the Hagen-Delstern location and work on high-strength steel for military applications, including weapon towers and vehicle chassis. The bankruptcy is surprising because the armaments industry in Germany is considered relatively crisis -proof, especially after the raid of Russia on Ukraine.

The provisional insolvency administrators, Dr. Mike Westkamp and Dr. Jan Janßen, describe the situation as "grown too quickly". However, Westkamp sees good renovation prospects and already reports interest from potential investors. Felix Urban remains optimistic and wants to stay at the top of the company in order to be able to start again after a possible renovation. Meanwhile, business operations continue to run in full, and the employees receive bankruptcy money from April to June.

a complex armaments market

public armor investments are more important than ever. In 2023, global military spending was around $ 2.44 trillion with Germany, which spends around $ 66.8 billion, one of the five largest arms exporters worldwide. These expenses are also a political issue because they are crucial for the state of the Bundeswehr, especially in view of the Ukraine conflict.

Felix Urban is aware of these challenges and comments that despite the difficulties in his company, the orders in the armaments industry should continue to exist in the long term. It remains to be seen how the support for the Bundeswehr and the 100-billion euro special assets, which is to be increased by an additional 19.2 billion euros in 2024, will influence the situation of urban industries and the entire industry.