Leading cleaning and sanitation products maker
) has expanded its Research, Development & Engineering
(RD&E) Center in Campinas, São Paulo. The facility has been
expanded to 1,300 square meters, which is almost the double of
its previous size. The expansion is intended to support research
and development activities throughout Latin America, especially
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The acquisition of Nalco and Champion Technologies along with two
more local takeovers has expanded Ecolab's base in Latin America.
Hence, management has taken up this expansion initiative to work
closely with its customers and value chain partners in this
The facility at Campinas incorporates labs that develop solutions
to improve Ecolab's oil and gas operations. The recently acquired
Houston, Texas-based Champion Technologies is a leading specialty
company. Ecolab acquired Champions to become a giant in the
oilfield chemical business and reduce competition for its Nalco
subsidiary. The expansion of the facility will allow the company
to develop new technologies for the acquired entities.
The center also has labs that research on industrial water
applications for the mining, pulp and paper, sugar and brewing
industries. Moreover, there are labs that create innovative
solutions for the company's cleaning and sanitizing as well as
food and beverage processing businesses.
In addition to developing new technologies to meet the needs of
its strong customer base, scientists at Ecolab's facility will
promote existing technologies such as 3D Trasar technology for
cooling water, Pareto mixing technology for the paper industry,
Wash 'n Walk enzyme-based floor cleaner and DryExx dry lubricants
for bottlers in the region.
Based in St. Paul, Minn., Ecolab serves the foodservice, food and
beverage processing, healthcare and hospitality markets. The
company remains focused on bringing new technologies into the
market. We believe that the expansion of the research center is a
good move, as Latin America represents a key growth area for the
company's overseas operation.
Ecolab currently has a Zacks Rank #3 (Hold). Other companies from
the basic materials sector such as
American Vanguard Corp.
OM Group Inc.
Minerals Technologies Inc.
) warrant a look. While AVD and OMG are Zacks Rank #1 (Strong
Buy) stocks, MTX carries a Zacks Rank #2 (Buy).