The Linde Group
Encyclopedia
The Linde Group, registered as Linde AG is an international industrial gas
es and engineering
company founded in Germany
in 1879. Linde shares are traded on all the German
stock exchanges and also in Zürich
, and the Linde share price is included in the DAX
30 index. The group is headquartered in Munich
, Germany
, with some supporting headquarters functions in Surrey
, England
.
The Linde Group underwent a significant transformation in September 2006, following the acquisition of UK based competitor The BOC Group
. The merger and subsequent disposal of non-gas interests recast the group as the world's largest pure-play industrial gases supplier. Linde's former materials handling business was rebranded as KION Group
in September 2006 and sold in November 2006 to KKR and Goldman Sachs
for €4bn. In March 2007 the BOC Edwards semiconductor equipment business was sold to CCMP Capital
for €685m.
Linde's sales in 2006 - a year of significant acquisitions and disposals - were €12.4 billion, with 55,000 employees.
Following the BOC acquisition, The Linde Group has become the world's largest industrial gas company. In 2005, Linde AG and BOC together had 21% of the world's market in industrial gases followed by Air Liquide
with 19%, Praxair
with 13%, Air Products & Chemicals
with 10%, Nippon Sanso with 4%, Airgas
with 3% and Messer Group with 1%.
The Linde Group today has two principal business areas: gas, divided in industrial gas
and medical gases, and engineering. In the industrial gas area the group trades under a number of established brand names including Linde, AGA, BOC, TIG, MOX
, Afrox and PanGas. HiQ is used as an identifier for high purity and premium specialty gases across all of these business brand names.
In the medical gas area Linde is known with the following names, Linde Gas Therapeutics, AGA Medical, INO Therapeutics, Linde Homecare, Farmadomo and Life Gas.
founded the Gesellschaft für Linde’s Eismaschinen Aktiengesellschaft to develop further his work in developing mechanical refrigeration systems for the brewing and food industries. Following success in this market, he moved on to developing lower temperature systems resulting in 1895 in a patent covering the liquefaction of air. Out of this work his company developed equipment for the separation of air and other gases. One of the first large-scale air separation plants was installed in Höllriegelskreuth, near Munich
in 1903.
In addition to plants air separation, in 1906 Linde engineers started working with other on processes to separate the constituents of water gas
. This work developed into capabilities in the manufacture of hydrogen
and carbon monoxide
, which were further key feedstocks for the emerging chemicals industry.
In addition to his interests in refrigeration, Carl von Linde had also partnered with Hugo Güldner and others in 1904 to form the Güldner Motoren-Gesellschaft mbH in Aschaffenburg. Linde took full ownership of the company in 1929, and from this origin developed a business manufacturing first engines and tractors, and then from the 1950s onwards, a range of mechanical handling equipment such as fork lift trucks. The Linde Group also acquired the Corporation for Industry Gas Utilization
, commonly referred to as the Heylandt Works
.
Linde has had a complex history of takeovers, mergers and divestments, and in 2000 completed the acquisition of AGA AB
of Sweden
. This was followed in 2004 with the divestment of the original core of the Linde business - the refrigeration division - to Carrier Corporation
of the USA. In March 2006 Linde made a proposal to acquire The BOC Group
for €11.7 billion in cash. The acquisition was completed on 5 September 2006. Following the acquisition, the combined gas and engineering group was rebranded as The Linde Group, and the materials handling activities separated and rebranded as KION Group. It was also announced that the BOC Edwards equipment business was to be sold.
June 2011: PT Linde Indonesia
, a subsidiary of the Linde group, announced its plan to build an air separation plant worth Rp.1 trillion ($117.33 million) in Cilegon
, Banten
, to supply industrial gas to PT Karakatau Posco's
steel plant.
Industrial gas
Industrial gas is a group of gases that are commercially manufactured and sold for uses in other applications. These gases are mainly used in an industrial processes, such as steelmaking, oil refining, medical applications, fertilizer, semiconductors, etc.,...
es and engineering
Engineering
Engineering is the discipline, art, skill and profession of acquiring and applying scientific, mathematical, economic, social, and practical knowledge, in order to design and build structures, machines, devices, systems, materials and processes that safely realize improvements to the lives of...
company founded in Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
in 1879. Linde shares are traded on all the German
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
stock exchanges and also in Zürich
SWX Swiss Exchange
SIX Swiss Exchange , based in Zurich, is Switzerland's principal stock exchange . SIX Swiss Exchange also trades other securities such as Swiss government bonds and derivatives such as stock options.The main stock market index for the SIX Swiss Exchange is the SMI, the Swiss Market Index...
, and the Linde share price is included in the DAX
DAX
The DAX is a blue chip stock market index consisting of the 30 major German companies trading on the Frankfurt Stock Exchange. Prices are taken from the electronic Xetra trading system...
30 index. The group is headquartered in Munich
Munich
Munich The city's motto is "" . Before 2006, it was "Weltstadt mit Herz" . Its native name, , is derived from the Old High German Munichen, meaning "by the monks' place". The city's name derives from the monks of the Benedictine order who founded the city; hence the monk depicted on the city's coat...
, Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
, with some supporting headquarters functions in Surrey
Surrey
Surrey is a county in the South East of England and is one of the Home Counties. The county borders Greater London, Kent, East Sussex, West Sussex, Hampshire and Berkshire. The historic county town is Guildford. Surrey County Council sits at Kingston upon Thames, although this has been part of...
, England
England
England is a country that is part of the United Kingdom. It shares land borders with Scotland to the north and Wales to the west; the Irish Sea is to the north west, the Celtic Sea to the south west, with the North Sea to the east and the English Channel to the south separating it from continental...
.
The Linde Group underwent a significant transformation in September 2006, following the acquisition of UK based competitor The BOC Group
The BOC Group
The BOC Group plc was the official name of the multinational industrial gas and British based company more commonly known as BOC, and now a part of The Linde Group. In September 2004, BOC had over 30,000 employees on six continents, with sales of over £4.6 billion. BOC was a constituent of the...
. The merger and subsequent disposal of non-gas interests recast the group as the world's largest pure-play industrial gases supplier. Linde's former materials handling business was rebranded as KION Group
KION Group
KION Group is the name of a manufacturer of materials handling equipment formerly part of Linde AG. On September 6, 2006 Linde announced a new structure following completion of the acquisition of The BOC Group, with the gas and engineering businesses of the combined entity operating as The Linde...
in September 2006 and sold in November 2006 to KKR and Goldman Sachs
Goldman Sachs
The Goldman Sachs Group, Inc. is an American multinational bulge bracket investment banking and securities firm that engages in global investment banking, securities, investment management, and other financial services primarily with institutional clients...
for €4bn. In March 2007 the BOC Edwards semiconductor equipment business was sold to CCMP Capital
CCMP Capital
CCMP Capital is a private equity investment firm that focuses on leveraged buyout and growth capital transactions. Formerly known as JP Morgan Partners, the investment professionals of JP Morgan Partners separated from JPMorgan Chase on July 31, 2006. CCMP has invested approximately $12 billion...
for €685m.
Linde's sales in 2006 - a year of significant acquisitions and disposals - were €12.4 billion, with 55,000 employees.
Following the BOC acquisition, The Linde Group has become the world's largest industrial gas company. In 2005, Linde AG and BOC together had 21% of the world's market in industrial gases followed by Air Liquide
Air Liquide
L'Air Liquide S.A., or Air Liquide , is a major French company supplying industrial gases and services to various industries including medical, chemical and electronic manufacturers. Founded in 1902, it is first in the world market in its field, now operating in over 80 countries. It is...
with 19%, Praxair
Praxair
Praxair, Inc. is the largest industrial gases company in North and South America and one of the largest worldwide. The company supplies atmospheric, process and specialty gases as well as high-performance coatings and related services to a wide diversity of customers around the world...
with 13%, Air Products & Chemicals
Air Products & Chemicals
Air Products and Chemicals, Inc. is an international corporation whose principal business is selling gases and chemicals for industrial uses. Air Products' headquarters is in Allentown, Pennsylvania, in the Lehigh Valley region of Pennsylvania, in the United States. Air Products is the Lehigh...
with 10%, Nippon Sanso with 4%, Airgas
Airgas
Airgas, Inc. , headquartered in Radnor Township, Pennsylvania, through its subsidiaries, is the largest U.S. distributor of industrial, medical and specialty gases , and hardgoods ....
with 3% and Messer Group with 1%.
Business activities
Industrial gas
Industrial gas is a group of gases that are commercially manufactured and sold for uses in other applications. These gases are mainly used in an industrial processes, such as steelmaking, oil refining, medical applications, fertilizer, semiconductors, etc.,...
and medical gases, and engineering. In the industrial gas area the group trades under a number of established brand names including Linde, AGA, BOC, TIG, MOX
Mox-Linde Gases
Mox-Linde Gases Sdn Bhd , is Malaysia's leading industrial gases company. Established in 1960, MOX specializes in providing total gas solutions, namely manufacturing and distributing industrial, special and medical gases, installations of gas equipment, pipelines and engineering services...
, Afrox and PanGas. HiQ is used as an identifier for high purity and premium specialty gases across all of these business brand names.
In the medical gas area Linde is known with the following names, Linde Gas Therapeutics, AGA Medical, INO Therapeutics, Linde Homecare, Farmadomo and Life Gas.
- Linde Gas is a supplier of a wide range of industrial gases, medical gases, specialty gases, refrigerants and other chemicals. Depending on the gas and the quantity required, these may be supplied in portable high-pressure gas cylinders, in liquefied form by road tanker, from on-site gas generators or in gaseous form via pipeline to large customers.
- Linde Engineering designs and builds large-scale chemical plants for the production of industrial gasIndustrial gasIndustrial gas is a group of gases that are commercially manufactured and sold for uses in other applications. These gases are mainly used in an industrial processes, such as steelmaking, oil refining, medical applications, fertilizer, semiconductors, etc.,...
es including oxygenOxygenOxygen is the element with atomic number 8 and represented by the symbol O. Its name derives from the Greek roots ὀξύς and -γενής , because at the time of naming, it was mistakenly thought that all acids required oxygen in their composition...
, nitrogenNitrogenNitrogen is a chemical element that has the symbol N, atomic number of 7 and atomic mass 14.00674 u. Elemental nitrogen is a colorless, odorless, tasteless, and mostly inert diatomic gas at standard conditions, constituting 78.08% by volume of Earth's atmosphere...
, argonArgonArgon is a chemical element represented by the symbol Ar. Argon has atomic number 18 and is the third element in group 18 of the periodic table . Argon is the third most common gas in the Earth's atmosphere, at 0.93%, making it more common than carbon dioxide...
, hydrogenHydrogenHydrogen is the chemical element with atomic number 1. It is represented by the symbol H. With an average atomic weight of , hydrogen is the lightest and most abundant chemical element, constituting roughly 75% of the Universe's chemical elemental mass. Stars in the main sequence are mainly...
and carbon monoxideCarbon monoxideCarbon monoxide , also called carbonous oxide, is a colorless, odorless, and tasteless gas that is slightly lighter than air. It is highly toxic to humans and animals in higher quantities, although it is also produced in normal animal metabolism in low quantities, and is thought to have some normal...
, as well as large plants associated with the processing of LPG and the manufacture of olefinsAlkeneIn organic chemistry, an alkene, olefin, or olefine is an unsaturated chemical compound containing at least one carbon-to-carbon double bond...
.
History
On 21 June 1879, Professor Doctor Carl von LindeCarl von Linde
Professor Doctor Carl Paul Gottfried von Linde was a German engineer who developed refrigeration and gas separation technologies...
founded the Gesellschaft für Linde’s Eismaschinen Aktiengesellschaft to develop further his work in developing mechanical refrigeration systems for the brewing and food industries. Following success in this market, he moved on to developing lower temperature systems resulting in 1895 in a patent covering the liquefaction of air. Out of this work his company developed equipment for the separation of air and other gases. One of the first large-scale air separation plants was installed in Höllriegelskreuth, near Munich
Munich
Munich The city's motto is "" . Before 2006, it was "Weltstadt mit Herz" . Its native name, , is derived from the Old High German Munichen, meaning "by the monks' place". The city's name derives from the monks of the Benedictine order who founded the city; hence the monk depicted on the city's coat...
in 1903.
In addition to plants air separation, in 1906 Linde engineers started working with other on processes to separate the constituents of water gas
Water gas
Water gas is a synthesis gas, containing carbon monoxide and hydrogen. It is a useful product but requires careful handling because of the risk of carbon monoxide poisoning. The gas is made by passing steam over a red-hot hydrocarbon fuel such as coke:...
. This work developed into capabilities in the manufacture of hydrogen
Hydrogen
Hydrogen is the chemical element with atomic number 1. It is represented by the symbol H. With an average atomic weight of , hydrogen is the lightest and most abundant chemical element, constituting roughly 75% of the Universe's chemical elemental mass. Stars in the main sequence are mainly...
and carbon monoxide
Carbon monoxide
Carbon monoxide , also called carbonous oxide, is a colorless, odorless, and tasteless gas that is slightly lighter than air. It is highly toxic to humans and animals in higher quantities, although it is also produced in normal animal metabolism in low quantities, and is thought to have some normal...
, which were further key feedstocks for the emerging chemicals industry.
In addition to his interests in refrigeration, Carl von Linde had also partnered with Hugo Güldner and others in 1904 to form the Güldner Motoren-Gesellschaft mbH in Aschaffenburg. Linde took full ownership of the company in 1929, and from this origin developed a business manufacturing first engines and tractors, and then from the 1950s onwards, a range of mechanical handling equipment such as fork lift trucks. The Linde Group also acquired the Corporation for Industry Gas Utilization
Arthur Rudolph
Arthur Louis Hugo Rudolph was a German rocket engineer and member of the Nazi party who played a key role in the development of the V-2 rocket. After World War II he was brought to the United States, subsequently becoming a pioneer of the United States space program. He worked for the U.S...
, commonly referred to as the Heylandt Works
Mittelwerk
Central Works was a World War II factory that used Mittelbau-Dora forced labor in 2 main tunnels in the Kohnstein. The underground facility produced V-2 rockets, V-1 flying bombs, and other Nazi weapons.-Mittelwerk GmbH:...
.
Linde has had a complex history of takeovers, mergers and divestments, and in 2000 completed the acquisition of AGA AB
AGA AB
AGA AB, previously AB Gasaccumulator and AB Svenska Gasaccumulator, was a Swedish industrial gas company founded in 1904. Nobel Prize laureate Gustaf Dalén was instrumental in the success of the company. Important inventions included the AGA cooker and the Dalén light. In the 1990's AGA conceived...
of Sweden
Sweden
Sweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe. Sweden borders with Norway and Finland and is connected to Denmark by a bridge-tunnel across the Öresund....
. This was followed in 2004 with the divestment of the original core of the Linde business - the refrigeration division - to Carrier Corporation
Carrier Corporation
The Carrier Corporation is one of the world’s largest manufacturers and distributors of heating, ventilating and air conditioning systems, and a global leader in the commercial refrigeration and food service equipment industry...
of the USA. In March 2006 Linde made a proposal to acquire The BOC Group
The BOC Group
The BOC Group plc was the official name of the multinational industrial gas and British based company more commonly known as BOC, and now a part of The Linde Group. In September 2004, BOC had over 30,000 employees on six continents, with sales of over £4.6 billion. BOC was a constituent of the...
for €11.7 billion in cash. The acquisition was completed on 5 September 2006. Following the acquisition, the combined gas and engineering group was rebranded as The Linde Group, and the materials handling activities separated and rebranded as KION Group. It was also announced that the BOC Edwards equipment business was to be sold.
June 2011: PT Linde Indonesia
Indonesia
Indonesia , officially the Republic of Indonesia , is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 13,000 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an...
, a subsidiary of the Linde group, announced its plan to build an air separation plant worth Rp.1 trillion ($117.33 million) in Cilegon
Cilegon
Cilegon is a major coastal industrial city in Banten province, Indonesia, covering 175.51 sqkm and has an official intercensal estimated population of 338,027 for 2007...
, Banten
Banten
Banten is a province of Indonesia in Java. Formerly part of the Province of West Java, it was made a separate province in 2000.The administrative center is Serang. Preliminary results from the 2010 census counted some 10.6 million people.-Geography:...
, to supply industrial gas to PT Karakatau Posco's
Krakatau Steel
Perusahaan Terbatas Krakatau Steel is a largest steel maker in Indonesia, headquartered in Cilegon, Banten. The location is on the western end of Banten and adjacent to the Sunda Strait, and where the Krakatoa volcano and island from which the company takes its name are located.-POSCO-Krakatau JV...
steel plant.