The only synthetic rubber plant in Argentina is closing down

Argentine energy company Pampa Energia plans to close the country's only synthetic rubber plant in Puerto General San Martín, the oil and chemical industry workers' union SOEPU reported.

The union notes that closing the plant will "deprive Argentina of domestic production of a key raw material for the automotive and footwear industries," and 150 employees will lose their jobs. 

Pampa Energia attributes its decision to a "sharp decline in demand in the synthetic rubber market," triggered by local tire company Fate's earlier decision to halt production at its plant in San Fernando. 

According to ERJ, Pampa Energia's plant has an annual production capacity of around 55,000 tons of styrene-butadiene rubber (SBR). In 2025, the company sold 41,000 tons of SBR, an 8% decrease compared to the previous year.

Fate announced the closure of its tire plant in February 2026, stating that the decision was due to changing market conditions and the influx of cheap imported tires. Approximately 920 people were employed at the facility. 

In May 2026, Cabot announced plans to close its Argentine carbon black production plant in Campana due to "structural changes in the regional tire and automotive markets." 

Photo: mundogremial.com