Argentina's Loma Negra Halts Kiln Amid Rising Unemployment and Industrial Decline
Loma Negra has suspended its main kiln until November 2026 due to excess inventories and weak construction demand. Concurrent layoffs at Tenaris SIAT and Mirgor highlight the human cost of President Milei's economic policies, with unemployment rising and poverty exceeding 50%.
Theia Market Signal Identification - AI Assisted
Loma Negra will cease operations at one kiln of its L'Amalí plant in Buenos Aires until November 2026, citing weak construction activity and high energy costs. The closure is part of a strategy to manage excess clinker stocks, which exceed 700,000 tonnes.
Concurrently, Tenaris SIAT laid off 150 workers, representing nearly half its workforce, due to losing contracts in the LNG sector. Mirgor has suspended 360 employees in Tierra del Fuego, implementing monthly production halts until year-end.
The economic backdrop includes a 54% peso devaluation and significant cuts to public works spending, leading to a 21.2% decrease in industrial production in March 2024. The combination of rising unemployment and poverty rates indicates a critical state for Argentina's industrial sector.
Comments