Chilean paper company CMPC said on Thursday that it was suspending operations at one of its plants, as the rising cost of electricity made it no longer viable.

 

The Rio Vergara paper plant in the south of Chile will cease operations from the end of November, said CMPC on Thursday. The plant represents less than 1 percent of revenues and earnings in 2013, it added.

 

The paper manufacturer has been struggling with rising costs, leading it to report second-quarter profits below market forecasts last month.

 

Steep power prices, a creaking grid and delays to big, controversial energy projects have created a headache for Chile's government and for mining companies and others that make heavy use of electricity.