"We understand that there is a missile shrapnel impact," the military told AFP, as Israeli television channels showed thick black smoke billowing into the sky from the Ramat Hovav industrial zone in the Negev desert in southern Israel.

There were no immediate reports of casualties.

In a separate statement on Sunday, police said: "The fire was apparently caused by the impact of a munition or interception debris.

"Searches are ongoing to locate additional items and eliminate any danger to the public."

The military had earlier said it had detected five waves of missile fire from Iran on Sunday.

"Defensive systems are operating to intercept the threat," it said each time.

In a statement the local council for the area said: "A hazardous incident has been declared, and all factory workers have been instructed to remain in protected areas."

The industrial zone, located 12 kilometres (7.5 miles) from the city of Beersheba, is home to more than 40 factories specialising in environmental technologies and development of industrial infrastructure.

The impact on the complex is the second such incident involving an industrial facility in Israel since the war with Iran began on February 28.

On March 19, Israeli media reported that an oil refinery in the northern port city of Haifa was hit, shortly after the military warned of incoming missiles from Iran.