AN ARSON probe is under way after fire gutted a disused Gwent factory - causing thousands of pounds' worth of damage, pictured.

The fire at the former site of Bairdwear, on the St David's industrial estate in Pengam on Wednesday night, is a massive blow for the local community.

The site had been up for sale, and there were hopes that a new company could have taken over the premises - providing much-needed jobs in the surrounding Valleys communities already reeling from redundancies in the aircraft engine industry and at the Gossard clothing factory.

The devastating blaze, reported at 10pm on Wednesday night, took firefighting crews from five different stations several hours to control.

It razed a considerable section of offices and gutted the first floor at the rear of the factory.

The property had been up for sale after Bairdwear left the premises in April 2000, axing 330 jobs in the process.

The job losses came after a prestigious lingerie contract with Marks and Spencer ended.

Fire investigators and scenes-of-crime officers from Blackwood police station combed the scene yesterday morning, searching for clues as to the cause of the fire.

"Malicious ignition" is strongly suspected, say Gwent Police.

Rob Gough, cabinet member on Caerphilly county borough council for economic development, said: "One of the biggest problems faced anywhere is the vandalism of empty units.

"It is a sad day because the factory was in a prime location next to a main road. It seems that certain people believe they have a right to vandalise a factory or even a house if it has been empty for a while."

He added: "We've been trying to attract firms to the site, but the problem we have is that the units are not modern-specification units.

"I know the lingerie firm Bentwood were looking at moving into the factory not long after Bairdwear closed down, but they decided against it."

Blackwood councillor Kevin Etheridge also expressed his sadness at the damage caused by the fire.

He said: "There were a lot of my constituents from Blackwood who worked in the Bairdwear factory in Pengam.

"Now the place has been burnt down it is a sad day because there was always a slight possibility that someone may have taken it over.

"Not only is it a sad day for Pengam, but also the surrounding areas where employment is so badly needed."