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Ecolab's (ECL) Nalco Water Opens Customer Experience Center

Zacks Equity Research

Ecolab Inc.’s ECL Nalco Water recently opened a customer experience center at its production plant. Notably, the company aims to demonstrate how the company’s technologies can reduce water use and optimize costs. This is expected to boost Ecolab’s Global Industrial segment.

Per management, a full range of Nalco’s cutting-edge water technologies is utilized at the plant that produces water treatment chemistries. The system uses reverse osmosis, ultrafiltration membranes and Nalco Water’s 3D TRASAR to treat waste water from different locations. This causes an overall reduction of freshwater use by 20%.

For investors’ notice, 3D TRASAR Technology for Cooling Water was launched by Nalco in 2015 to address complex water management needs of the industry. The system delivers the appropriate chemistry response to ensure a balanced, efficient and safe cooling system.

Ecolab’s Water Treatment Offerings at a Glance

Ecolab is a leading provider of water, hygiene and energy technologies and services. The company’s Global Industrial segment consists of Water, Food & Beverage, Paper and Textile Care operating units and is one of the major revenue drivers. The segment contributed 36.7% of total revenues in the last reported quarter.

Notably, Ecolab offers treatment services for raw water, cooling water and waste water through real-time data monitoring and water management software tools.

In June, Nalco unveiled a new offering, LegionGuard LG25, which is designed to lower the waterborne pathogen Legionella pneumophila in drinking water systems. (Read More: Ecolab's Nalco Water to Boost Public Health With New Offering)

Freshwater Crisis Goes Global

The world is currently struggling with dwindling water resources, threatening a staggering number of lives.

Libya, Yemen and Jordan are already facing severe water scarcity and the United States might also face the same. Notably, states like Texas, Oklahoma, Arizona, Kansas, New Mexico and Nevada are apprehended to be running out of water.

Per management, demand for freshwater is expected to outpace supply by 40% by 2030.

Reflective of these, the global water treatment systems market size is anticipated to be valued at $44.01 billion by 2025 at a CAGR of 7.1% (per Grand View Research).

Hence, Ecolab’s latest developments have been well-timed.

Price Performance

In a year’s time, shares of this Zacks Rank #3 (Hold) company have rallied 26% against the industry’s 4.4% decline.

Key Picks

A few better-ranked stocks in the broader medical sector are Baxter International BAX, Intuitive Surgical ISRG and Masimo Corporation MASI, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Baxter’s long-term earnings are expected to grow 12.8%.

Intuitive Surgical’s long-term earnings are projected to increase 12.8%.

Masimo’s long-term earnings are estimated to rise 20.5%.

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