Blog
22nd September 2020
Almost a century and a half old Henkel AG & Company, KGaA, is a multinational chemical and consumer goods company headquartered in Düsseldorf, Germany. Though it operates globally with a well balanced and diverse portfolio, in North America it is known for three business units: Adhesive Technologies, Beauty Care, and Laundry & Home Care. Schwarzkopf® hair care, Dial® soaps, Right Guard® antiperspirants, Persil®, Purex®, and all® laundry detergents, Snuggle® fabric softeners as well as Loctite®, Technomelt® and Bonderite® adhesives are some of it’s well known consumer and industrial brands. With about 9000 people working in the North American region, Henkel’s 26% of global sales come from North American establishments. With the number of coronavirus cases increasing nonstop worldwide, the demand for hand sanitizers has witnessed an astronomical rise in the past few months, and Henkel has announced its decision on spending a whopping USD 23 million in its North American manufacturing facilities.
Major parts of the investment would go on fresh equipment installation and up-gradation of old ones, to aid in the additional production of Dial® liquid hand soap and hand sanitizers at its Geneva, NY, and West Hazleton, PA sites. "We are thrilled to announce a supply expansion of essential products in North America," Doug Parkinson, Vice President of Operations at Henkel's Geneva facility was seen quoting in September 2020. "It's not only a win-win for our business, it will support our local job and economic growth. Investing in Dial will provide consumers and businesses with much needed home and personal hygiene products."
CNBC reported that the hand sanitizer sales in the UK rose by a towering 255% in February 2020. Parallelly, in Italy, hand sanitizer sales grew meteorically by an astonishing 1,087% in February, just as the COVID 19 pandemic was gaining momentum. In April 2020, Henkel AG decided to up the hand sanitizer production game in its Düsseldorf site besides other leading companies that were keen on hand sanitizer business. The market size in North America was at USD 485.59 million in 2019 and it is expected that this region would lead the hand sanitizer market share owing to the exponential rise in coronavirus cases and death tolls in the US.
This decision of the Henkel is to not only meet the global demands of this alcohol-based microorganism killing liquid and earn profits but also to create at least 180 new jobs and support those that lost theirs in the pandemic. 45-55% of the total production for the newly acquired Geneva site would be taken care of from the same investment. The site that was purchased from Zotos Professional, in 2018, would be rebranded to Henkel and besides hair care products, antibacterial soaps and hand sanitizers would be produced.
US Senator Charles Schumer was ecstatic while saying "There are now 180 new reasons to cheer every time we wash our hands thanks to the expansion of Henkel's manufacturing facility in Geneva. This will lather up a major economic boost in the heart of New York's Finger Lakes region by harnessing our skilled workforce to manufacture the sanitizers and soaps needed in our homes and workplaces during the pandemic, all while investing over $17 million to create 180 new jobs. I applaud Henkel for doubling down on its Geneva workforce and committing to grow this facility now and into the future."
"We are proud to work with Henkel on this fantastic investment in the Geneva community. Zotos, and now Henkel, are important parts of the manufacturing base in the region and we are thrilled to help more manufacturing jobs flow to the community," Congressman Tom Reed, continued "We will continue to advocate for our local economies and always encourage corporations to take a look at the incredible workforce and business environment our District has to offer."
Knowing to have served the consumers with a variety of products, while spending millions of dollars on sustainable attachments, about 75% of Henkel's investment would be on installation of new equipment and technology at Henkel's Geneva, NY facility to support production of Dial® hand sanitizers and foaming hand wash. 11% and 13% of the USD 23 million would go, respectively, for the West Hazleton facility and for additional equipment on both the above mentioned sites.