Ecolab Inc. announced a temporary 8%-12% energy surcharge on all of its global products, effective April 1, 2022. This surcharge is intended to mitigate the dramatic rise in energy costs.
Christophe Beck, Ecolab’s president and chief executive officer, commented, saying, “The protracted global environment for higher raw material and logistics costs, driven by the inflationary environment the world has experienced over the past year, have recently faced unprecedented surges resulting from the Russia-Ukraine conflict.
“As a long-term business partner to our customers, we have taken continued actions to ensure supply chain resilience and reduce volatility by accelerating value engineering, optimizing supplier footprints, increasing strategic inventory and expanding our end-to-end supply chain partnerships to help mitigate extreme raw material and logistics shortages. We have also taken a wide range of productivity actions to improve our efficiency and reduce our costs to help offset the strong inflationary challenges and subsequent pricing.
“Nonetheless, we now also need to implement this temporary energy surcharge to mitigate the dramatic rise in oil and gas costs and its impact on raw material and logistics inflation to ensure we can continue to provide reliable product supply, as well as continue to invest in the product innovation, digital technology and service expertise that is core to our differentiated global offering. We will monitor this situation monthly; when the current energy cost surge moderates, we expect to reduce or remove this surcharge.
“We are confident that this measure will ensure our ability to continue to provide the products and services our customers rely on as well as provide the leading technologies, solutions and services to help our customers reduce their usage of natural resources and their impact on the environment while improving their total cost of operation.”