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Leading cleaning and sanitation products maker Ecolab Inc. (ECL - Analyst Report) recently inaugurated a new training facility in Eagan, Minnesota. The 51,000-square-feet center will be primarily used to train field associates from the company’s Institutional Division. In addition, the company has kept sufficient provisions to expand its Research, Development and Engineering (RD&E) work at the center.  

Ecolab’s Institutional business under the U.S. Cleaning and Sanitizing segment manufactures specialized cleaners and sanitizers as well as food safety and hospitality products to cater to a wide range of customers such as hotels, restaurants, commercial buildings, healthcare and military facilities.

The Institutional Division markets its offerings mainly via company-employed field sales personnel. Management built the Institutional Training Center to educate these salesmen regarding its specialized products and programs, in an effort to provide better customer support.

Ecolab plans to train more than 2,000 sales executives and conduct 130 sessions at this facility in the next few years. Moreover, the additional space for RD&E will be used to develop new products for the Institutional business as well as other cleaning and sanitizing franchises under the company.

One of Ecolab's peers, Covidien plc. (COV - Analyst Report), a leading healthcare products maker, has already set up The Covidien Clinical Institute (“CCI”) in China. This facility imparts training to local healthcare professionals regarding proper and effective use of latest offerings.

St. Paul, Minnesota-based Ecolab serves the food service, food and beverage processing, healthcare, energy, water treatment and hospitality markets both in the U.S. as well as internationally. The company continues to invest in strategic areas such as health care, food, water and energy, and global pest elimination to expand its business.

We currently have a ‘Neutral’ recommendation on Ecolab. The stock carries a short-term Zacks #3 Rank (Hold rating).

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