Adapting to the Group’s Transformation and Keeping Pace with Market Changes: Linde’s Leapfrog Growth in China

— Interview with Mr. Zheng Xinqing, General Manager of KION Group’s Asia-Pacific Mobile Robotics and Internal Logistics Division In response to the increasingly urgent market demand for intelligent and flexible internal logistics, Linde Material Handling’s development path in China has undergone profound restructuring—accelerating its transformation from a traditional material handling equipment manufacturer into an intelligent logistics and automation solutions provider. Linde Material Handling, a subsidiary of KION Group, is a globally leading supplier of forklift trucks and internal logistics solutions, operating in over 100 countries and regions worldwide. It has consistently maintained strong brand recognition and market leadership in the conventional forklift sector. Starting in 2015, Linde (China) Forklift Co., Ltd. (hereinafter referred to as “Linde (China)”) proactively entered the forklift AGV business. In 2019, it formally established its Mobile Robotics Division to systematically advance innovation in intelligent logistics. In 2020, buoyed by the rapid growth of the Chinese market and continuous enhancement of local innovation capabilities, KION Group decided to establish an Asia-Pacific AGV R&D and manufacturing center at Linde (China), taking full responsibility for R&D, testing, and production coordination of mobile robotics products. This move marked Linde (China)’s official designation as a global technological hub and innovation source within KION Group’s worldwide automation strategy. Transitioning from a traditional material handling equipment manufacturer to an intelligent logistics and automation solutions provider has become the central theme of Linde (China)’s recent development. Recently, to gain deeper insight into Linde (China)’s strategic thinking and practical implementation regarding technology deployment, market insights, and strategic transformation, our magazine interviewed Mr. Zheng Xinqing, General Manager of KION Group’s Asia-Pacific Mobile Robotics and Internal Logistics Division, who provided an in-depth interpretation of how Linde (China) achieved leapfrog growth amid the wave of logistics intelligence—and how it is spearheading the Group’s automation-driven strategic transformation. Zheng Xinqing General Manager, KION Group Asia-Pacific Mobile Robotics and Internal Logistics Division Strategic Transformation and Global Collaboration Reporter: To begin, could you briefly introduce Linde (China)’s strategic transformation efforts in recent years? Zheng Xinqing: Aligned with KION Group’s 2027 Strategy—formulated in 2017—which explicitly prioritizes digitalization, automation, and new energy, Linde (China) formally established its Mobile Robotics Division in 2019, followed by the formation of cross-functional teams to build end-to-end capabilities covering sales, solution design, system delivery, project implementation, after-sales service, and local R&D. KION Asia-Pacific Automation Center of Excellence “Igniting a New Journey” Inauguration Ceremony In 2020, given the explosive growth of China’s mobile robotics market, KION Group established its Asia-Pacific AGV manufacturing and testing center at Linde (China) to centrally manage R&D of mobile robotics products. Empowered by advanced automation technologies and integrated solution capabilities, Linde Material Handling further articulated its strategic vision—to transform from a standalone forklift manufacturer into a “one-stop material handling solutions provider.” To further deepen its Asia-Pacific market strategy centered on China, KION Group implemented two major strategic adjustments in 2024, accelerating its automation transition: First, it established the Asia-Pacific Automation Center of Excellence at Linde (China), expanding Linde (China)’s jurisdiction beyond China to cover the entire Asia-Pacific region; Second, it significantly strengthened Linde (China)’s local R&D capacity by integrating its R&D system into the Automation Center of Excellence framework, enabling unified, integrated management.

Blaming AI Again? This Gas Soared 240%

Argon is no novel high-tech material. It is obtained via air separation and widely used in welding, steelmaking, and metal processing—fields seemingly far removed from 'AI' or 'semiconductors.' Yet this time, capital markets have begun grouping argon alongside tungsten hexafluoride, helium, and semiconductors in discussions. Argon’s Price Surge: AI Is Not to Blame Argon is primarily produced through low-temperature fractional distillation of air—a byproduct of air separation units (ASUs). Unlike many chemical commodities, manufacturers cannot simply install dedicated argon production lines to boost output when prices rise. Additional supply ultimately depends on ASU capacity, argon extraction capability, and downstream distribution infrastructure—meaning short-term supply elasticity is inherently low. This summer, some ASUs underwent maintenance shutdowns; high temperatures forced certain equipment to operate at reduced loads; and supply disruptions occurred in several regions—leading to a temporary tightening of liquid argon supply. According to a July analysis by Sinopec Consulting, concentrated ASU maintenance across central and eastern China—combined with reduced liquid output due to extreme heat—significantly widened the market supply gap. Yet what makes argon noteworthy is its dual identity. On one hand, it is a vital industrial gas for welding, steelmaking, and mechanical manufacturing—argon arc welding being its largest application, widely employed in structural steel, pressure vessels, shipbuilding, construction machinery, and aluminum components for new-energy vehicles. On the other hand, argon also belongs to the category of electronic bulk gases, serving protective and carrier-gas functions in semiconductor manufacturing. The semiconductor industry imposes far stricter requirements on argon purity, impurity control, and supply stability than general industrial applications do. It is not a 'magical semiconductor material,' but rather one of the most fundamental and ubiquitous gases in semiconductor production. And precisely because it is so foundational, its dynamics reflect the expansion of the entire industrial chain. While AI did not directly drive this round of price hikes, it is indeed lifting the long-term demand floor. Argon prices surged 240%—but AI cannot be held directly responsible. However, AI-driven chip fabrication expansion is undeniably raising the long-term demand floor for electronic specialty gases. Two global industrial gas leaders have already committed substantial real investment toward semiconductor capacity expansion. On July 31, 2026, Linde announced a long-term gas supply agreement with a major global semiconductor manufacturer, committing approximately USD 1 billion to expand its industrial gas facilities in Phoenix, Arizona, USA. The company plans to construct two new air separation units to supply ultra-high-purity nitrogen, oxygen, and argon to two newly built semiconductor wafer fabs. Linde stated this would represent one of its largest-ever investments globally for electronic industry customers. If semiconductor capacity expansion were merely a capital-market narrative, Linde would have no reason to invest USD 1 billion building air separation units. In July 2026, industrial gas giant Air Products disclosed in its third-fiscal-quarter earnings materials that its subsidiary Sanfu Gases had signed a long-term agreement with a semiconductor manufacturer for its capacity expansion. Under the agreement, Sanfu will design, build, own, and operate four large-scale advanced air separation units, bulk gas supply systems, and underground pipeline networks—supplying nitrogen, oxygen, argon, and helium. This means semiconductor-driven gas demand has already translated into tangible capital expenditures by suppliers—not just conceptual talk. Argon Is the Symptom—Supply and Demand Are the Core Broadening our view from argon to the entire electronic specialty gases sector reveals that argon is neither the first nor the last gas to experience supply-demand shifts.

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Linde plc outlined strategic priorities focusing on industrial gases and energy transition trends to support shareholder returns. Leveraging stable cash flows, the company serves global manufacturing and healthcare sectors with products like industrial oxygen.

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