Argentina’s Factory Slump Deepens as Loma Negra Halts a Kiln
Argentina · Economy
Key Facts
—Cement kiln halted Argentina’s leading cement producer, Loma Negra, is suspending a main kiln for six months due to weak construction demand and high energy costs, a direct signal of the real-economy slump.
—Pipe plant cuts 150 jobs Techint’s Tenaris SIAT pipe unit dismissed 150 workers after failing to win Vaca Muerta LNG tenders, erasing nearly half the contracted staff at its Valentín Alsina plant.
—Electronics suspensions Mirgor suspended about 360 workers for one week each month at its Tierra del Fuego cell phone and electronics plants, responding to collapsing domestic sales and looming tariff eliminations.
—Public works freeze Construction has shed over 73,000 jobs since the start of President Javier Milei’s administration, with public works spending cut by around 90% and non-metallic minerals output down about 35%.
—Poverty above 50% Poverty surged to 53% in early 2024 and remains near 50%, while real wages fell 6% in the first months of Milei’s shock-therapy program, deepening the human cost of the adjustment.
Argentina’s industrial slump deepens as the country’s largest cement producer halts its main kiln, while a leading pipe plant and an electronics manufacturer push forward with layoffs and suspensions, sharpening the human cost of President Javier Milei’s economic adjustment.
Loma Negra idles flagship kiln until November 2026
Loma Negra, Argentina’s leading producer of cement, concrete and lime, will suspend one of the two main kilns at its L’Amalí plant in Olavarría, Buenos Aires province, until November 2026. The company announced the move as part of a production-adjustment program designed to reduce excess clinker and cement inventories, stating that existing stock levels—including a clinker stock exceeding 700,000 tonnes—are sufficient to supply the domestic market during the shutdown.
The company pointed to weak construction activity and rising energy costs as key factors behind the decision. LNG import prices in Argentina reportedly climbed to around $20 per million Btu, up from roughly $12.3 a year earlier. The second kiln at L’Amalí is slated to shut down during May and June, with a possible restart in July. Alejandro Santillán, secretary general of the Olavarría division of the Argentine Mining Workers’ Association (AOMA), warned that the halt reflects weak demand caused by a slowdown in public works.
Tenaris SIAT cuts 150 workers after losing energy tenders
The Techint Group dismissed 150 workers at its Tenaris SIAT pipe plant in Valentín Alsina, in the municipality of Lanús, Buenos Aires province. The cuts, which took effect in late June, affected almost half of the contracted workforce at the facility that previously produced pipes for the Gasoducto Néstor Kirchner (GNK) in 2022–2023.
According to Infobae, the layoffs came after Tenaris SIAT failed to win two tenders linked to Argentina’s largest liquefied natural gas (LNG) export project in the Vaca Muerta shale formation. The dismissals underline how energy-sector contract dynamics, combined with the government’s market-oriented policies, are reshaping the industrial labor landscape.
Mirgor suspends hundreds in Tierra del Fuego electronics hub
Mirgor, an Argentine company that produces electronics, mobile and automotive components, implemented a suspension plan affecting about 360 workers at its Tierra del Fuego plants—Industria Austral de Tecnología (IATEC), Famar and Brightstar—which focus mainly on electronic device production such as cell phones. The plan foresees one week per month of halted production until the end of the year, with roughly 500 workers inactive in cell phone manufacturing during those weeks.
The policy backdrop is critical: the national administration announced it will eliminate import tariffs on cell phones, televisions and air conditioners, the three main products of Tierra del Fuego’s electronics industry. The tariff will be cut from 16% to 8% in a first stage, with complete elimination scheduled for January 15, 2026. Separately, in July 2025 the Mirgor Group separated approximately 50 employees from its Río Grande plants through individual agreements without union participation.
Why this matters for expats and investors
The cascading industrial stoppages highlight that Milei’s shock-therapy program—centered on a 54% peso devaluation, sweeping austerity, and spending cuts estimated at 4.5% of GDP—is crushing demand in key sectors. Official INDEC data show industrial production fell 21.2% in March 2024 from a year earlier, with non-metallic minerals and base metals down around 35%, and construction activity contracting roughly 21.1% over the year. Public works and infrastructure spending were cut by around 90%, effectively eliminating many projects.
For foreign residents and investors, the developments signal both risk and a potential reset. Manufacturing closures have exceeded 2,000 businesses, and over 73,000 construction jobs and 42,000 industrial jobs have disappeared since Milei took office. While the administration argues that deregulation and tariff removals will eventually lower consumer prices, the immediate reality includes rising official unemployment to around 8%, real wages down 6% in the early phase, and poverty surging to 53% before settling near 50%—with more than 6 million people estimated in extreme poverty.
The wider factory-floor toll
The job losses extend well beyond the headline companies. Furniture production dropped over 40% year-on-year in a recent monthly INDEC report, electronics and tools output fell nearly 43%, and automotive factories are operating at around 24% of their capacity. In industrial suburbs of Buenos Aires, local unemployment reportedly rose to around 18% from 9.1% a year earlier, accompanied by a 4.4% year-on-year drop in industrial output in August.
Pension purchasing power has dropped 22%, and university and science funding fell 35–40% in real terms. The minimum wage, in real terms, declined 34% and now sits below its 2001 level, ranking among the lowest in Latin America when measured in dollars. Businesses and workers alike are bracing for further adjustments as the tariff liberalization for electronics and the broader austerity program continue to reshape Argentina’s industrial map.
Frequently Asked Questions
Why is Loma Negra shutting down its main kiln?
Loma Negra is halting one main kiln at the L’Amalí cement plant in Olavarría until November 2026 to reduce excess clinker and cement inventories. The company cites weak construction activity and high energy import costs as the primary reasons.
How many workers are affected by the Tenaris SIAT and Mirgor cuts?
Tenaris SIAT laid off 150 workers at its Valentín Alsina pipe plant, affecting nearly half the contracted staff. Mirgor suspended about 360 workers at its Tierra del Fuego electronics plants for one week per month until year-end, and separately dismissed roughly 50 workers in Río Grande.
What is driving the industrial slump in Argentina?
The slump is driven by President Javier Milei’s shock-therapy program, which includes a 54% peso devaluation, subsidy removals, deregulation, and public spending cuts of about 4.5% of GDP. Public works were cut by around 90%, construction activity collapsed, and industrial output fell 21.2% year-on-year in March 2024.
Sources: Loma Negra to suspend kiln at L’Amalí plant amid weak demand, Tras perder dos licitaciones para Vaca Muerta, Techint despide a 150 trabajadores, Mirgor suspende sus actividades en Tierra del Fuego por la caída en las ventas, AOMA warns of Argentina cement industry crisis, Argentina industrial output crashes 21.2% in March under Milei, The human cost of Milei’s austerity in Argentina
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