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As a result of the closely-interlinked production system in the Material Handling business segment, equipment failures or loss of output for a long period at individual locations could potentially affect our ability to supply our customers. The same applies to production plants in the Linde Gas division, where machine failure for a long period could give rise to substantial additional costs as a result, for example, of additional external product purchases and higher logistics costs.
We are countering these risks by taking preventive maintenance measures, providing major spare parts, implementing fire protection measures, training employees and setting up a network of external suppliers. We are insured against any other losses which might occur, to the extent that this is reasonable in terms of economic benefits.
To manage the quality risk in the production of goods and services, quality assurance is ranked highly by Linde right at the beginning of the value creation process. From the beginning, Linde delimits the quality-related risks by setting demanding quality standards for development, performing intensive reviews along the entire length of the production process chain and maintaining constant contact with suppliers.
