The Concepción-based mill was hit by the earthquake, which is so far is believed to have affected almost 2m Chileans.

Chief executive Sven Ombudstvedt said: "The positive news regarding our colleagues in Chile was a big relief.

"As soon as more detailed information is received, the group will initiate necessary efforts to assist our colleagues at Norske Skog Bio Bio and their families."

Based on initial reports, he said that the company expects operations in Chile to be halted for some time, but that property damage and business interruption are covered by insurance.

He was unable to comment further at this time.

Norske Skog Bio Bio has an annual capacity of 130,000 tonnes of newsprint and employs 240 people.