Steinway & Sons: What Is Happening in Hamburg?

The discussion began within the German piano community, where recent reports outlined a series of developments at Hamburg — the departure of Guido Zimmermann, changes in Steinway’s European management, reduced production capacity, and statements said to have been made at an extraordinary works meeting concerning the company’s long-term production structure.

Because Hamburg remains an important part of the European piano industry, we felt these developments were relevant to our professional community.

Our purpose in covering stories like this is not to speculate or to take sides. Piano Industry Magazine exists to support the piano profession and to provide our readers with information about developments that may matter to manufacturers, technicians, dealers, teachers and pianists.

At the same time, we believe that information is most useful when the companies involved have an opportunity to speak for themselves. We therefore contacted Steinway & Sons directly and asked the company to clarify the situation.

Steinway confirms management changes

Steinway confirmed that Guido Zimmermann left the company at the end of June.

The company also clarified the role of Gavin English. His responsibilities were expanded to include the EMEA region — Europe, the Middle East and Africa — but not Asia. Steinway says that Wei Wei continues as President of Steinway & Sons – Asia Pacific.

Joachim Merz has joined Steinway as Managing Director, EMEA. Notably, Merz comes from outside the piano world — Steinway describes him as bringing “extensive experience driving operational excellence, manufacturing performance, and business transformation” from the automotive industry. According to the company, he is working closely with longtime Steinway executive Olaf Gube, who continues in his role as VP of Manufacturing.

A further appointment worth noting for readers who follow the trade: Steinway has also brought in Morgan Franke as Head of Retail Operations & Marketing for the EMEA region. Franke joins Steinway from C. Bechstein, where he held a senior role.

What about the Hamburg factory?

This is the most important clarification from Steinway.

The company confirms that the Hamburg factory is currently operating at reduced production capacity. Steinway attributes this to what it describes as an industry-wide downturn in the piano business, particularly in the Chinese market supplied by the Hamburg factory.

However, the company explicitly rejects the suggestion that it plans to close Hamburg.

“It is not true that our plan is to shut down the Hamburg factory.”

Steinway continues:

“We have built Steinways in Hamburg for almost a century and a half, and our intent is to continue building them there for many years more.”

The company says it has implemented programs to revitalise sales and has taken steps to increase the efficiency of the factory.

What about jobs and future production?

Steinway says that it is continually evaluating its business in terms of sales, costs and efficiency across both factories and all regions.

The company states:

“Our goal is always to avoid layoffs/redundancies whenever possible. But sometimes these steps are necessary in the short term to ensure stability in the long term.”

Steinway also points to examples in its history where employees who were laid off later returned when demand and sales recovered.

Regarding Hamburg specifically, the company says:

“Our goal in Hamburg is to turn around our business and get to a place of growth in the near future.”

What we know — and what remains unclear

The information that prompted this story came from within the piano community. Some of the developments described have now been confirmed by Steinway, including the management changes and the reduced production capacity in Hamburg.

Steinway also clarified two points from the earlier accounts. The company states plainly that closing the Hamburg factory is not its plan, and confirmed that Gavin English’s expanded role does not include Asia — that region continues to be led by Wei Wei.

One of the points we raised with Steinway — the account that Hamburg employees had previously agreed to forego holiday pay in exchange for job security — was not directly addressed in the company’s response.

The company’s response also makes clear that Steinway is reviewing sales, costs and efficiency across its operations, and that employment levels may change when necessary. Exactly how quickly Hamburg can return to growth, and how its production structure will develop over the longer term, remains to be seen.

For now, however, Steinway’s position is clear: the company says it intends to continue building Steinways in Hamburg for many years to come.

A shared responsibility

The piano industry is going through a challenging period in many markets. This is precisely when transparency and cooperation matter most — and when it becomes clear that speculation is not the only risk to the trade; silence and passivity can be just as damaging. Manufacturers, associations and institutions carry a responsibility toward the market they serve: their dealers, their technicians, and the pianists and owners who trust their instruments. Part of that responsibility is to inform them — openly, and in good time — about the developments that affect them. We encourage everyone across the piano trade to share reliably what matters to the community. When the industry speaks with one voice, grounded in facts, the whole profession is stronger for it.