Rain Inds announces temporary closure of European operating unit

Rain Carbon's European footprint is essential to the company's global operations, and these decisions are being made be taken to ensure the long-term viability of operations.

Rain Carbon Inc., a wholly owned subsidiary of Rain Industries, announced temporary closure of an operating unit in Europe. It is developing additional energy-related contingency plans for its other European production units in anticipation of potential natural gas shortages and price spikes during the upcoming winter months resulting from the unprecedented and unpredictable geopolitical environment.

"Given the severe natural gas situation in Europe -- the expected decrease in consumer demand during the cold winter months for certain products and the risk of continued increases in gas prices - we have conducted a thorough analysis of the energy-intensity of each production unit at our European plants and are closely evaluating whether it makes economic sense to temporarily reduce or shut down additional production lines in the event the situation worsens," said Rain Carbon president Gerry Sweeney.

The company said it is closely monitoring its suppliers and customers, as some of them are taking similar actions that could indirectly or directly impact operations as well. Any measures taken are expected to be temporary, the company said. Rain Carbon added that it is fully committed to returning to full operations when the situation improves.

Europe is struggling with a deep energy crisis after Russia slashed the supplies of cheap natural gas that the continent depended on for years. The loss of Russian natural-gas supplies will cause reserves to deplete faster when temperatures drop in the coming months.

Rain Industries is a leading vertically integrated global producer of a diversified portfolio of products that are essential raw materials for staples of everyday life. It operates in three business segments: carbon, advanced materials and cement.

On a consolidated basis, net profit of Rain Industries surged 184.10% to Rs 668.46 crore on 52.07% increase in net sales to Rs 5540.55 crore in Q2 June 2022 over Q2 June 2021.

Shares of Rain Industries fell 1.11% to Rs 201.35 on Thursday, 8 September 2022.

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