Police has confirmed that they have received reports of a shooting incident at the Inline National Signage & Property Services following which they have already launched an operation on Heald Street near Stenette roads.

The shootout began on Monday at around 10:45 a.m. [Sydney time] in which three people were reportedly shot. One of them was killed while the other two have been injured. Police said that emergency services were called to the factory to deal with the situation. One of the victims was shot in the shoulder while another in the leg.

According to The Australian, a group of police has surrounded the Inline factory where the gunman has been allegedly trapped. One of the employees working at a nearby business across the road told AAP that one person was already dead. “Police told us not to go near windows,” the employee said. The authorities have requested public to avoid the area and they have blocked the roads for safety.

Police was not clear about the number of people trapped inside the firing spot with the gunman. The gunman is believed to have an automatic rifle. Reports have confirmed that there are also police negotiators present at the scene. According to Stuff New Zealand, police said that when the officers arrived, three people were already shot. One man died at the scene, while the rest two were taken to the hospital for treatment.

Reports suggest that police are continuing their operations and a perimeter has been established to ensure the gunman is going to be captured. Witnesses confirmed that officers with weapons could be seen at the spot. The business across the road, supplier Fred Tapping, said staff witnessed the whole scene from nearby. One of its employees, Shaun Cooper, claimed that he saw police officers remove one dead body from the scene with two dragged out for treatment of wounds.

A NSW police spokesperson confirmed that the officials started responding to the report of the shooting as soon as they received the information. A NSW Ambulance spokesperson said that they were called to the spot at 10:45 a.m. on Monday after the shooting incident was reported to authorities.