Nalco, a unit of
), recently completed the installation of its 20,000
3D TRASAR technology systems for cooling water, boiler water and
membrane operations. This marks a keystone in Nalco's operations in
the market for water and energy services.
The company's 3D TRASAR technology evaluates system
parameters and problems and implements remedial measures.
This implies optimum efficiency in cooling water, boiler water and
membrane operations at manufacturing facilities.
The first system was installed in 2004 to promote water
conservation and energy utilization and to improve production
efficiency. The 3D TRASAR technology has played a pivotal role in
saving almost 438 billion gallons (1.66 trillion liters) of water
to date. The estimated amount is sufficient to meet the annual
water needs of at least 17 million people.
The last 3D TRASAR technology system was set up at the bottling
facility of Nestlé Waters North America in Hawkins, Texas.
Management at Ecolab believes that its technology will catalyze
Nestlé's efforts towards sustainable water management.
The 3D TRASAR technology can help to curtail water and energy
wastage as well as the total operating costs of Nestlé. The
installation is expected to boost Nestlé's business value, based on
a higher energy return on investment. Thus, the company will have
the advantage of both economic and environmental gains.
Ecolab is the world leader in development and provision of
products and services for food services, water, energy and the
healthcare industry. It acquired Nalco, a leader in water and
energy services, in December 2011. The merger has enabled the
combined entity to address major trends such as growing food demand
and food safety, water scarcity, rising energy demand and an aging
population's need for health care. According to Ecolab, the
integration process is moving in the right direction as the company
is able to deliver on growth and cost synergies.
While Ecolab has strong international exposure and recovery
across its end-markets, aggressive competition is a matter of
concern. The company's U.S. Cleaning & Sanitizing and
International divisions face stiff competition from
Church & Dwight
However, the dilutive impact of the hefty restructuring expenses
on the company's bottom line remains an overhang. We currently have
a long-term Neutral recommendation on Ecolab. The stock retains a
Zacks #4 Rank, which translates into a short-term Sell rating.
CHURCH & DWIGHT (CHD): Free Stock Analysis
CLOROX CO (CLX): Free Stock Analysis Report
ECOLAB INC (ECL): Free Stock Analysis Report
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