In 1770 the first attempts took place to erect a hammer works on this site. The iron hammer forge was built using an available weir which was being used to irrigate the sheep pastures of Liebsdorf. In order to make better use of the water power, the building was dug into the earth, rather like a cellar. This enabled a drop of 2.70 metres for the two overshot wheels.
In earlier times, the mill made tools and components for other mills, as well as hammers, wagon parts, metal tyres, fittings, anvils, surface plates, wagon axles and – usually in summer when the water level was low – horseshoe nails.
The bell clappers made here were well known far beyond Weida; several are supposed to have weighed four hundredweight. These clappers may be found today in Naumburg Cathedral, Erfurt Cathedral, in Magdeburg, in Cologne and even in the Church of the Redeemer in Jerusalem.
The operation was closed in 1921.