NEW YORK (Bloomberg) — Bermuda-based industrial giant Ingersoll-Rand Co. said chief executive officer and chairman Herbert Henkel plans to retire in 2010 and the company promoted Michael Lamach to president and chief operating officer as a first step "to ensure a smooth transition".

All division heads will report to Lamach in the newly created role, the company said in a statement on Monday. Lamach, 45, joined Ingersoll-Rand five years ago and is a candidate to replace Henkel, the company said.

"The board is going to go through its process and certainly Mike will be given strong consideration," spokesman Paul Dickard said in a phone interview.

Lamach joined the company after serving for 18 years with Johnson Controls Inc. in the automotive and controls units. He was named president of Trane Commercial Systems at Ingersoll-Rand in June and previously served as president of Ingersoll-Rand's security and safety unit.

Henkel, 60, has served as chief executive officer for more than eight years and has worked for Ingersoll since April 1999, Dickard said.

Ingersoll shares have lost 55 percent in the past 12 months.