Global sanitation products major
) recently announced that its newly-acquired subsidiary, Nalco
Holdings, will soon begin the construction of a dry polymer making
factory at its Garyville complex in Louisiana. The dry polymer
offerings produced at the facility will be used in the paper,
mining and water industries.
The 300,000 square-feet factory will expand the existing
Garyville complex to one million square feet. The construction is
expected to utilize the services of about 167 full-time laborers.
In addition, the company also plans to recruit 22 full-time
employees at the facility once the construction is completed in
Ecolab zeroed down on this particular complex to further bolster
its production efficiencies based on the promising record of
Nalco's growth in the Garyville community. Ecolab, through this
expansion, also hopes to develop a strong bonding with Nalco
employees belonging to this community.
Ecolab's revenues jumped 85% (including the Nalco merger) year
over year to $2,810.9 million (a quarterly record) in the most
recent quarter. On a fixed currency basis, revenues grew 9% in
comparison to the year-ago pro forma fixed currency sales. Growth
was triggered by Global Energy and Latin American franchises along
with Food & Beverage, U.S. Institutional and Global Water
Ecolab closed, in December 2011, its $8.3 billion acquisition of
Illinois-based water treatment services major Nalco Holding. To
incorporate the Nalco merger in its results, the company computed
pro forma figures based on the consolidated historical results of
both Ecolab and Nalco.
Ecolab offers its products and services to the hospitality,
foodservice, institutional and industrial markets across more than
160 countries. The company continues to invest in strategic areas
such as product innovation, healthcare, water and energy and global
pest elimination to spur growth.
Ecolab remains focused on bringing new technologies aimed at
reducing food safety risks. Moreover, the company is aggressively
pursuing acquisitions to expand into emerging markets. Latin
America remains a key growth engine for the company's overseas
Although we are impressed by Ecolab's strong international
exposure, we remain cautious about aggressive competition from the
Church & Dwight
). Also, raw material price inflation and high delivered product
costs remain headwinds.
We are currently Neutral on Ecolab, supported by a short-term
Zacks #3 Rank (Hold).
ECOLAB INC (ECL): Free Stock Analysis Report
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