Pampa Energía is shutting down its only synthetic-rubber manufacturing facility in Puerto General San Martín, Santa Fe, as part of a strategic pivot toward its US$2.7 billion urea fertilizer plant.
The closure puts approximately 130 jobs at risk, marking a significant contraction in the company's industrial footprint outside of its core energy and fertilizer ambitions.
The move underscores the scale of the Bahía Blanca project, which Handelsavisen previously reported has received final investment approval.
The move underscores the scale of the Bahía Blanca project, which Handelsavisen previously reported has received final investment approval.
The new urea plant, located on Argentina's Atlantic coast, represents the first facility of its kind in the country in roughly 25 years and is central to Pampa's strategy to monetize natural gas from the Vaca Muerta shale formation.
By divesting from synthetic rubber, Pampa is streamlining its operations to concentrate resources on the fertilizer venture, which is expected to transform Argentina's agricultural input supply chain.
The decision reflects a broader trend among Latin American energy firms to prioritize high-margin, export-oriented projects over legacy industrial assets.
The closure highlights the operational trade-offs involved in executing large-scale capital projects in emerging markets.