<PAGE>   1
                                                                    Exhibit 10.7



                          [HMI INDUSTRIES LETTERHEAD]




                                January 31, 1997




Mr. Carl H. Young, III
HMI Industries Inc.
100 South Ashley Drive
Tampa, Florida 33602

          Re:       Terms and conditions of employment.

Dear Carl:

          This is to confirm the terms and conditions of your employment
as Vice President and General Counsel of HMI Industries Inc. (the "COMPANY")
beginning on January 31, 1997 and continuing thereafter for an indefinite
period, subject to the severance terms specified below. The other terms and
conditions of your employment are as follows:

          1.   Your duties shall be consistent with the offices of Vice
               President and General Counsel, as may be specified from time to
               time by the President and Chief Executive Officer of the Company
               and the Board of Directors. You shall devote your time, energies
               and skills on a full-time basis to performing your duties for the
               Company.

          2.   You will be based in the Tampa office at the address listed
               above, however your duties will involve traveling to various
               locations outside your office; and more particularly, significant
               duties will require your presence at the Company's Cleveland,
               Ohio office.

          3.   You shall receive an annual base compensation of $ 200,000,
               payable semi-monthly on the 15th and last day of each month, in
               the amount of $ 8,333.33.

          4.   You shall be eligible to participate in the Company's Executive
               Incentive Plan, and you shall be an eligible participant in the
               Omnibus Plan (as defined below).


<PAGE>   2


Mr. Carl H. Young, III
Page 2
January 31, 1997


          5.   You shall receive an initial compensation payment of $ 65,000 for
               agreeing to the terms and conditions of this employment, and such
               amount shall be paid $ 32,500 on March 1, 1997 and $ 32,500 on
               May 1, 1997. As a "Key Employee" defined under the Company's 1992
               Omnibus Long-Term Compensation Plan (the "OMNIBUS PLAN"), you
               shall receive a grant of 20,000 shares of Restricted Common Stock
               as defined under the Omnibus Plan. Such shares of the Company s
               Common Stock shall become fully vested at the earlier of January
               31, 1998 or upon a "Change In Control" of the Company, as defined
               by the Omnibus Plan. Such 20,000 shares shall be subject to
               adjustment as may be appropriate to increase the number of such
               shares to be issued to you due to a subdivision of the Company's
               outstanding Common Stock resulting from a stock dividend or stock
               split, or a decrease in the number of such shares due to a
               combination of the Company's outstanding Common Stock into a
               smaller number of shares resulting from a reverse stock split.

          6.   You shall receive an automobile allowance of $ 750 per month plus
               reimbursements for gasoline, oil, maintenance, and automobile
               insurance, including full damage and liability coverage. The
               personal injury liability coverage shall include limits of $
               500,000 per person and $ 500,000 per accident, and property
               damage coverage of $ 250,000.

          7.   The Company shall continue to keep in force the life insurance
               policy that you currently have with Northwestern Mutual pursuant
               to your prior employment, and the Company shall pay the "split
               dollar" premiums on the Northwestern Mutual policy for the
               duration of your employment by the Company. In addition, you
               shall be eligible for participation in all Company benefit plans
               pertaining to life insurance, and you shall be provided with the
               standard executive life insurance coverage that other senior
               executives of the Company receive.

          8.   The Company acknowledges the consulting services you provided to
               the Company prior to January 31, 1997 and shall pay you the sum
               of $ 8,000 for such services, contemporaneously with the signing
               of this letter agreement.

          9.   In the event the Company terminates your employment for any
               reason other than "for cause" (as defined below), you shall
               receive the following severance benefits.

               (a)  You shall receive a full year's salary of $ 200,000,
                    promptly upon such termination.
<PAGE>   3


Mr. Carl H. Young, III
Page 3
January 31, 1997


               (b)  All shares of Restricted Common Stock granted or to be
                    granted to you under the Omnibus Plan that have not yet
                    vested shall vest immediately, and certificates
                    representing such shares shall be promptly delivered to you.
                    At that time, all restrictions applicable to such shares
                    shall be terminated, except to the extent necessary to
                    comply with applicable securities laws.

               (c)  All options granted or to be granted to you to purchase the
                    Company's Common Stock that have not yet vested shall vest
                    immediately.

               Termination "for cause" shall mean termination of your employment
               by the Company due to your (i) malfeasance or (ii) conviction of,
               or admission to, a crime involving moral turpitude.

          I believe that the above terms and conditions of your employment by
the Company are consistent with the prior discussions we have had. Please
acknowledge your acceptance and agreement below.



                                   Sincerely,

                                   HMI Industries Inc.



                                   By: /s/ Kirk W. Foley 
                                      -------------------------------------
                                       Kirk W. Foley, President
                                       and Chief Executive Officer




ACCEPTED AND AGREED TO BY:


/s/ Carl H. Young
-----------------------------
Carl H. Young, III