In the Refrigeration Division, the Group made a clean cut. After the business segment became a legally independent unit as of 1st January, 2004, the management signed an agreement on the sale of this segment on March 15th, 2004 to the American company the Carrier Corporation, a subsidiary of the United Technologies Corporation (UTC, based in Hartford, Connecticut).
In making the decision on the future of the Refrigeration Business Segment, the main objective was not a quick solution but one that made sense for all sides. "After all, we weren’t just talking about any division of the Group, but about the very foundation of our company," explained Professor Dr Wolfgang Reitzle. That is why Linde did not simply yield to the pressure from the financial markets to immediately divest itself of its smallest and least profitable division, but instead carefully sought the most sustainable alternative. In fact the new alliance is built on a very stable foundation. Carrier is the world’s leading provider of air-conditioning equipment and enjoys an outstanding position in the United States, while Linde leads the European market for refrigerated and frozen-food display cases and the associated refrigeration equipment. Together, the companies are the global market leader for refrigeration and air conditioning, with good opportunities to realise above-average growth - even in a difficult economic climate.
In addition to adjustments to the portfolio, the new President and CEO started other initiatives for the continuous improvement of the Group’s operative performance. At the centre is the introduction of the Balanced Scorecard in July 2003 and the beginning of the Six Sigma program in spring 2003.
The Balanced Scorecard is a control instrument to expand on and standardise the existing key figure systems within the group. The result is that the individual operative measures by business segments are now even more closely interlocked with the company’s strategic corporate goals.
The goal of Six Sigma is to minimize possible errors in all procedures and processes and therefore increase quality. At the same time, this program is intended to deliver considerable cost reductions and further raise customer satisfaction , on an ongoing basis.
Furthermore, Linde has restructured its personnel development department and implemented a comprehensive personnel strategy, with the most important building blocks being performance-based compensation systems, efficient management of potential and a focus on continuing education and professional qualifications.