Ecolab Relocating German Facilities - Analyst Blog
December 21 2011 - 7:45AM
Zacks
U.S. cleaning and sanitation
products major Ecolab Inc (ECL) has divulged its
plans to relocate its German offices and R&D operations from
Dusseldorf to a new high-tech innovation center in Monheim am
Rhein.
The new location will house the
Minnesota-based company’s R&D, engineering as well as local
sales and marketing functions. The Monheim am Rhein facility will
have a world-class customer innovation center, where Ecolab’s
innovative
program and service solutions will be featured. The company is
expected to commence relocating employees in November 2012. The
completion of the move is expected in first-quarter
2013.
The company stated that its
move to relocate its German facilities to the new center came at
the right time as it celebrates the 50th
anniversary of
its presence in that country. Moreover, it has noted that the
selection of the Monheim am Rhein location was based on its
technical capabilities and additional space which will allow it to
co-locate major functions.
Ecolab caters products and services
to the hospitality, foodservice, institutional and industrial
markets across more than 160 countries. The company’s U.S. Cleaning
& Sanitizing and International divisions face stiff competition
from Clorox (CLX) and Church &
Dwight (CHD).
To drive growth, the company
continues to invest in strategic areas such as, product innovation,
healthcare, water and energy and global pest elimination while
rationalizing operating costs.
Ecolab, in February 2011, announced
a major restructuring plan for its European business aimed at
boosting efficiency and profitability in that operation. As part of
this initiative, the company plans to realign its
supply chain and prune headcount which will involve
elimination of roughly 900 jobs. The restructuring, once
completed, has been projected to save more than $120 million
annually.
Although we are impressed by
Ecolab’s strong international exposure, we remain cautious about
aggressive competition, raw material price fluctuations and
dilutive impact of the hefty restructuring expenses on the
company’s bottom line. We currently have a Neutral recommendation
on Ecolab, which is backed by a Zacks #3 Rank (Hold).
CHURCH & DWIGHT (CHD): Free Stock Analysis Report
CLOROX CO (CLX): Free Stock Analysis Report
ECOLAB INC (ECL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Ecolab (NYSE:ECL)
Historical Stock Chart
From May 2024 to Jun 2024
Ecolab (NYSE:ECL)
Historical Stock Chart
From Jun 2023 to Jun 2024