Pampa Energia to close Argentina's only synthetic rubber plant

Buenos Aires – Argentinian energy group Pampa Energia has announced plans to close down the country’s only synthetic rubber plant in Puerto General San Martin, according to United Petrochemical Workers and Employees Union (SOEPU).

In a 23 July social media statement, the trade union said “the measure leaves Argentina without domestic production of this key input for the automotive and footwear industries.”

The move, said the union, will impact 150 workers.

According to its website, Pampa Energia’s rubber plant has the capacity to produce 55 kilotonnes per annum (ktpa) of styrene butadiene rubber (SBR).

In 2025, the company said it sold 41ktpa of SBR, down 8% from 45ktpa sold in 2024.

Pampa Energia linked the decision to "the sharp decline in the local synthetic rubber market," affected by the move by local tire producer Fate to discontinue production at its plant in San Fernando, Buenos Aires province, earlier this year.

In February, the tire maker said it was closing its production facility due to what it described as “changes in market conditions” and cheap imports, affecting 920 jobs.

In May, US supplier Cabot also announced plans to close its carbon black production facility in Campana, due to “structural changes in the region’s tire and automotive markets.”

According to Cabot, the Campana plant manufactured carbon blacks for elastomer reinforcement for the tire and industrial rubber product industries, as well as speciality carbons for plastics, inks, coatings and a variety of other applications.