Production at Norske Skog's Bio Bio mill still halted

The company said that, following damage at the newsprint mill, it would take "some time" to restart production.

In a statement, it said: "The Norske Skog Group will work hard to minimise negative consequences for customers and suppliers.

"However, based on the severity of the situation, the group has issued a notice of force majeure."

A force majeure is a common cause in contracts that frees a company from liability and/or obligation in the case of an extraordinary event, such as an earthquake.

Earlier this month, Sappi Fine Paper Europe warned the European paper industry that it could face additional paper price increases as a result of last month's earthquake, which struck on 27 February and has been followed by hundreds of smaller aftershocks.

Sappi claimed that the quake would impact on the global supply of pulp and put additional pressure its services.