Ecolab’s Industrial Segment Announces Price Increase

Rhea-AI Summary

Ecolab announced a price increase for its Industrial segment, effective immediately due to rising energy, raw material, and operational costs. Price hikes will range from 9% to 15%, varying by region and industry. Darrell Brown, executive vice president, highlighted that ongoing cost pressures necessitate these adjustments to continue delivering value through advanced solutions and services. Ecolab, a leader in water and hygiene solutions, serves almost three million customer locations globally, with annual sales of $12 billion.

Positive

• Implementation of price increases can offset rising costs and maintain product quality.
• Ecolab's focus on delivering value through advanced technology and services enhances customer loyalty.

Negative

• Price increases may lead to reduced demand from cost-sensitive customers.
• Potential for negative impact on market share if competitors do not raise prices similarly.

ST. PAUL, Minn., June 25, 2021 (GLOBE NEWSWIRE) -- Ecolab Inc., the global leader in water, hygiene and infection prevention solutions and services, has announced that its Industrial segment is implementing price increases for all Industrial segment divisions, effective immediately or as contracts permit. The need for these price increases is driven by the continued and significant escalation of energy and raw material costs, tightening availability of raw materials and rising packaging, transportation, personnel and utility costs.

Pricing for most Industrial segment programs will increase between 9% and 15%. Price increases will vary by country and industry, driven by local cost increases.

Darrell Brown, Ecolab executive vice president and president, Global Industrial, commented, “Our focus for customers is consistent – helping them achieve the best operating performance while optimizing the efficiency and total cost of their operations. Key to this value delivery – which we call our Exponential Return on Investment (eROI) – are the ongoing investments we make in our industry-leading products and in the advanced industry expertise our sales-and-service associates bring to every customer site.

“The rise in cost pressures and the availability of key raw materials over the past several months have made it necessary to appropriately raise prices to help offset these ongoing cost increases and ensure our ability to continue to provide the leading technologies, solutions and services to help our customers reduce water and energy use, waste, and their total cost of operation.”

Ecolab Industrial sales representatives will contact customers to discuss the impact of these increases.

About Ecolab
A trusted partner at nearly three million customer locations, Ecolab (ECL) is the global leader in water, hygiene and infection prevention solutions and services. With annual sales of $12 billion and more than 44,000 associates, Ecolab delivers comprehensive solutions, data-driven insights and personalized service to advance food safety, maintain clean and safe environments, optimize water and energy use, and improve operational efficiencies and sustainability for customers in the food, healthcare, hospitality and industrial markets in more than 170 countries around the world. www.ecolab.com

Follow us on LinkedIn @Ecolab, Twitter @Ecolab, Instagram @Ecolab_Inc and Facebook @Ecolab.

Contacts:

Michael J. Monahan
+1 651 250 2809

Nate Brochmann
+1 651 250 3837

Andrew C. Hedberg
+1 651 250 2185

June 25, 2021
                        
(ECL-C)

FAQ

What is Ecolab's new pricing strategy for the Industrial segment as of June 2021?

Ecolab has implemented price increases of 9% to 15% for its Industrial segment due to rising costs.

Why is Ecolab raising prices for industrial solutions?

The price increase is driven by significant escalations in energy, raw material costs, and other operational expenses.

How are the price increases structured across different industries?

Price increases will vary by country and industry, based on local cost increases.

What are the potential impacts of Ecolab's price increase on customers?

Customers may face higher costs, which could affect their demand for Ecolab's products.

When did Ecolab announce the price increases for its Industrial segment?

Ecolab announced the price increases on June 25, 2021.