Ecolab acquires water treatment provider in China
Ecolab Inc, a US-based producer of disinfectant and food safety services, has acquired controlling interest in Jianghai Environment Protection Co Ltd, headquartered in Changzhou in Jiangsu province, to expand its water treatment in China.
The company’s chairman of the board and chief executive officer, Douglas M. Baker Jr., confirmed plans to expand its water treatment business in China.
Jianghai provides water treatment technologies, chemistries and services to several industries in China, including customers in power and chemicals. It has more than 550 employees and operates two manufacturing plants in Changzhou. In 2014, the company had sales of $90 million.
“The acquisition broadens services and improves opportunities in strategic water treatment market, and enhances our ability to help customers address growing water constraints in China,” said Wang Tie, executive vice president of Ecolab Inc.
The acquisition, completed on June 16, complements Ecolab’s current industrial water treatment offerings under the Nalco name, and strengthens the company’s long-term growth opportunities in the increasingly water-stressed Chinese market.
Both companies are known for their service-oriented, problem-solving approach to optimizing customer operations and profitability.
“We are confident our team in Jianghai will apply our best technology and come up with appropriate solutions for local companies to operate in an environmentallyfriendly way,” said Wang.
Ecolab entered the Chinese market 40 years ago and has completely localized with its five factories, the largest research center in the AsiaPacific region, and more than 40 branches all over the country.
With customers in more than 170 countries in the world, Ecolab specializes in water, hygiene and energy technologies and services that protect people and vital resources. It delivers comprehensive solutions and on-site service to promote safe food, maintain clean environments, optimize water and energy use, and improve operational efficiencies for customers.
“We have a research team to work on the updating technologies and factories to produce the items especially for Chinese market, which gets more promising with the raising attention on food safety and water problems from local clients,” said Wang.
The State Council released the Action Plan for Water Pollution Prevention and Control on April 16, after two years of research and revision since it was first drafted in April 2013, in order to tackle water pollution, aiming to intensify government efforts to reduce emissions of pollutants and to protect supplies.
The Standing Committee of China’s National People’s Congress (NPC), the country’s top legislature, also voted on April 24 to adopt an amendment to the Food Safety Law that gives the heaviest penalties yet to offenders.
Touted as the “toughest food safety law” in China’s history, the amendment is considered a move toward achieving the strictest ever supervision system for food safety. The new law will go into effect on Oct 1.
“Those regulations showed that the central government is determined to improve the environment in China, which will bring more opportunities than challenges for us to help customers with more sustainable solutions,” said Wang.
In addition, Ecolab relies on its more than 3,000 staff members, aiming to develop more innovative technologies continuously.
“We will spend more on R&D to solve the problems on food safety, environmental protection and energy development in Shanghai, to follow the city’s mission on being a global technological innovation center,” said Wang.