Chile CMPC's biggest sawmill still down due strike

* Workers continue indefinite strike over pay

* Sawmill produces 350,000-400,000 cubic meters a yr

SANTIAGO, June 3 (Reuters) - Chilean forestry and paper company CMPC CAR.SN said Thursday its biggest sawmill in south-central Chile remained paralyzed as a workers strike entered its fourth day.

CMPC's Mulchen plant, one of the company's three operating sawmills, produces between 350,000 and 400,000 cubic meters of sawed wood a year. The three mills together usually produce around 1 million cubic meters of sawed wood a year.

The company has a fourth sawmill that has been out of action since early 2009.

A company spokeswoman said the strike, which the company has called "illegal and arbitrary," continued.

Some 136 of the plant's more than 450 workers have joined the strike, the company said. The plant lies around 315 miles (500 km) south of the capital, Santiago.

The disruption comes three months after a massive Feb. 27 earthquake and ensuing tsunamis killed hundreds of people, ravaged towns and roads and hammered the forestry, fishing, wine and fruit industries of south-central Chile.

CMPC, which also produces wood pulp and paper, has estimated it lost $170 million due to damage from the quake.

CMPC is a rival of Chile's Arauco, one of the world's largest pulp producers and the forestry unit of Chilean industrial conglomerate Copec COP.SN. (Reporting by Fabian Cambero; Editing by John Picinich)