companies that suspended operations in RS after rain

Companies with a strong presence in Rio Grande do Sul announced the suspension of their activities amid the climate catastrophe that is ravaging Rio Grande do Sul, which has already caused 78 deaths and left 105 people missing and 175 injured, in addition to thousands of people being left homeless.

In addition to the destruction, heavy rains in the region affected the supply of inputs and transport on roads and railways. The state is an important agricultural producer and also has important industrial production units of companies listed on B3.

Ten poultry and pork production units are paralyzed or experiencing extreme difficulties operating in the state, according to the Brazilian Animal Protein Association (ABPA). In total, there are 20 poultry meat plants and 16 pork plants in the State.

Bradesco BBI pointed out that the catastrophe in Rio Grande do Sul should also disrupt retail operations in the coming weeks in the region. The companies under the bank’s coverage with the greatest store exposure in the state are Lojas Quero Quero (LJQQ3; 54%), Carrefour Brasil (CRFB3; 11%) and Petz (PETZ3; 6%). region listed on B3.

Gerdau

Gerdau (GGBR4) suspended its operations in the state of Rio Grande do Sul due to the natural disaster caused by heavy rains in the region. The company reinforced, in a note published on X (formerly Twitter), this Sunday (5), that, throughout its history, it has always supported the development of the state, “the birthplace of our company”.

“At this delicate moment, we have mobilized efforts to prioritize people’s protection and safety. Therefore, we have paused our operations in the state until we can safely resume. We are also offering support to all employees who need it,” he says.

Download a list of 10 Small Caps stocks that, in experts’ opinion, have appreciation potential in the coming months and years, and watch a free class

The note also highlights that Gerdau has donated items to nearby communities, such as basic food baskets, hygiene kits and other items. “We are also mobilizing helicopters to support logistics in these regions,” he says.

Amazon

The e-commerce retailer Amazon reported in a statement on Friday (3) that it has suspended operations at its distribution center in Nova Santa Rita, in the Metropolitan Region of Porto Alegre (RMPA), since Thursday (2), due to the impact of rain.

The CD is located in the 3SB park, where there are also groups such as Comercial Zaffari, from Passo Fundo, with the logistical structure of its Stok Center wholesale brand.

“We are closely monitoring the situation and will resume activities as soon as it is safe to do so,” explained the e-commerce giant, in the note. The company clarifies that the measure was adopted to preserve the safety of employees and that the complex where the CD is located was not affected by flooding”, said the company in a statement.

Direction

Rumo (RAIL3) reported this Monday (6) that, following extreme weather events that hit the state of Rio Grande do Sul in recent days, the Company’s Southern Operation was partially affected in the state. “Train circulation is currently partially interrupted in the region and damage to assets is still being properly measured. Based on an initial assessment, no material deviations from the estimated results for the year 2024 are expected, according to projections presented in the Material Fact dated February 8, 2024. The Company’s priority is to ensure the safety of employees and their families, as well as well as operations in the region. The entire Rumo team stands in solidarity with the population of Rio Grande do Sul”, he issued in a statement.

Braskem

Petrochemical company Braskem began a general shutdown of industrial units at the Triunfo Petrochemical Complex, in Rio Grande do Sul. There was no forecast for the resumption of activities at the company’s assets.

“This action is preventive, in the face of a possible scenario of interruption in water collection, aiming for a safe stop. We reinforce that Braskem’s priority is always the safety of its members, partners and the local community”, declared the company in a statement.

Portos RS

The port authority of Rio Grande do Sul, Portos RS, informed the IM Business which remains mobilized about the consequences of the flood that hit the state. “The Port of Rio Grande, in the southern region of the state, the main terminal in Rio Grande do Sul, is operating normally. However, Portos RS evaluates the situation daily, due to the possibility of flooding over the next few days”, he declared in a statement.

At the Port of Pelotas, the main operation is the shipment of wood logs to the CMPC factory, in Guaíba, for cellulose production. This operation is currently paralyzed.

The Port of Porto Alegre is the unit, so far, most affected by the floods and its operations are suspended. There is a ship moored at the pier and another anchored in Rio Grande due to the impossibility of navigation to the capital.

“As a port authority, we are monitoring the situation at the Porto Alegre unit, the most affected to date. We are also monitoring the Pelotas and Rio Grande units that are on the path that the waters must take to reach the ocean through Molhes da Barra”, said the president of Portos RS, Cristiano Klinger, in a statement.

Marcopolo

Marcopolo (POMO4) also reported at the end of last week that it had to interrupt some operations (two units in Caxias do Sul until Sunday), but that it would have enough stock to continue production normally, regardless of logistical challenges related to the weather, and expects only a slight impact on volumes for the quarter.

Weg

WEG (WEGE3) also suspended operations in some of its units until last Sunday (5), evaluating weather conditions over the weekend to decide on resumption.

Frasle Mobility

Frasle Mobility (FRAS3) announced last Thursday (2) that it had momentarily suspended face-to-face operations in some of its manufacturing units in RS. This Monday (6), the company informed that it had partially resumed face-to-face activities in Caxias do South.

“The measure considers the context and conditions in the cities involved, respecting and preserving professionals who are experiencing difficulties in their homes or with family members. The Company also reinforces that it is taking all necessary measures to adapt its operations to the current scenario, prioritizing people’s safety above all,” it said in a statement.