By Malvika Gurung
investing.com — Shares of the petrochemical firm Rain Industries (NS:) tanked 6.8% to Rs 187.55 apiece at the time of writing, after plunging over 8% in early trade on September 9, following the company’s announcement of temporarily shutting its European unit.
The chemical industry company’s wholly-owned subsidiary Rain Carbon announced to temporarily close its European unit, given the severe 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 cited as the major concerns.
Rain Carbon’s President Gerry Sweeney stated a thorough analysis of the energy-intensity of each production unit at the company’s European plants.
It is also 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, read the company filing.
Further, the company is closely tracking its suppliers and customers for maintaining the long-term viability of operations.
“Any measures taken are expected to be temporary, and Rain Carbon is fully committed to returning to full operations when the situation improves,” it added.