Around 50 employees at Blue Ridge Hardwoods in Eden were sent home from work this morning after a fire broke out last night.
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Emergency services were called on to the scene at 2.45am.
Four Rural Fire Service trucks assisted NSW Fire and Rescue to get the blaze under control.
When the fire fighters arrived at the sight the fire was through the roof in one corner of the complex.
NSW Fire and Rescue captain Zlatco Nemec said the fire cause extensive damage to one fifth of the factory.
“We believe it was an electrical fault that caused the fire, there were no suspicious circumstances.”
It took the fire fighters almost 12 hours to completely extinguish the fire.
“We had problems with the fire continuously reigniting due to the saw dust,” Captain Nemec said.
When employees of Blue Ridge Hardwoods arrived for work in the morning the emergency services were still battling the flames so they were sent home.
The full extent of the damage and the cost of repair is as yet unknown.