Pampa Energía shuts Argentina’s sole synthetic rubber plant, 130 jobs lost

Pampa Energía announced the definitive shutdown of its synthetic rubber plant in Puerto General San Martín, Santa Fe – the only facility of its kind in Argentina – affecting roughly 130 workers directly and putting more than 150 jobs at risk.

The company cites a dramatic fall in domestic demand, especially from tire maker FATE, whose monthly purchases dropped from around 7,000 t to just 250 t, leaving the unit financially unsustainable and prompting a shift to imported rubber.

Union representatives from SOEPU have staged protests outside the Ministry of Labor in Rosario, accusing Pampa of offering individualized “voluntary retirement” agreements that amount to disguised dismissals. As Rodrigo Jordana put it, “Estamos en la puerta del Ministerio. La empresa… intenta acordar con cada trabajador lo que es un despido encubierto.” The union also warned that staffing of the plant’s emergency brigade fell well below the required safety minimum.

The government has been called on to intervene. Pampa says it will try to relocate some affected employees to other group projects, including a new urea plant in Bahía Blanca, while the rest of the petrochemical complex continues operating.