Argentina’s Factory Slump Deepens as Loma Negra Halts a Kiln
Argentina’s industrial slump deepened as cement maker Loma Negra said it will idle one main kiln at its L’Amalí plant in Olavarría until Nov 2026, citing weak construction and higher energy costs. Tenaris SIAT cut 150 workers after losing LNG-related tenders, and Mirgor suspended about 360 workers amid planned tariff cuts on electronics.
How this was made
The 30-second read
Why it matters
Loma Negra’s kiln shutdown, Tenaris SIAT’s LNG-tender-related layoffs, and Mirgor’s electronics production suspensions collectively indicate demand softness and shifting procurement/tariff conditions, with near-term earnings risk for industrial issuers.
Market read
For traders, the actionable signal is operational: planned production idling and labor reductions tied to construction weakness, energy costs, LNG contracting, and tariff liberalization.
What to watch
The article lacks company-level financial disclosures, backlog figures, and whether kiln/production pauses are fully offset by exports or cost reductions, which could materially change equity impact.
Background
The article frames Argentina’s industrial slump under President Javier Milei’s adjustment program, citing sharp construction spending cuts and weaker industrial output.
Ticker impact
Loma Negra will suspend one of two main kilns at its L’Amalí plant until November 2026 to cut excess clinker and cement inventories.
Near-term downside bias on production and earnings expectations; longer-dated stabilization depends on construction/public works recovery.
The article cites weak construction activity and higher energy import costs as drivers, plus a planned shutdown window through late 2026, which typically weighs on output and utilization.
Tenaris SIAT cut 150 workers after failing to win two LNG-linked tenders tied to Argentina’s Vaca Muerta export project.
Negative read-through for utilization and backlog; stock impact depends on how much SIAT LNG exposure matters versus the group’s broader order book.
The article provides workforce and tender context but no financial magnitude or group-level guidance, limiting confidence on equity impact.
Market effects
Cement, industrial pipes, and electronics supply chains face utilization pressure from weaker construction and shifting energy/LNG contracting dynamics.
Argentina’s adjustment program is driving broader industrial job losses, which can further depress domestic demand for construction-linked materials.
Limited direct global spillover, but LNG project contracting and energy-linked industrial procurement can affect regional supply chains and sentiment.
Counterpoint
Inventory reduction and scheduled production cuts can prevent worse margin erosion, potentially supporting pricing later if demand stabilizes.
Key entities
- companyLoma Negra
Argentina’s leading cement producer, idling a main kiln at L’Amalí until November 2026 to manage excess inventories amid weak construction and higher energy costs.
- companyTenaris SIAT
Tenaris Group’s pipe plant unit that dismissed 150 workers after failing to win LNG-linked tenders tied to Vaca Muerta export plans.
- companyMirgor
Electronics manufacturer that suspended about 360 workers one week per month until year-end, alongside planned tariff cuts on consumer electronics.
- personJavier Milei
Argentina’s president whose shock-therapy program is described as driving austerity, devaluation, and reduced public works spending.
