The gunman had opened fire at the industrial unit on Monday morning, killing a man and injuring two others. Police quickly surrounded the factory, located in the industrial suburb of Ingleburn in the city`s southwest.
The two injured men were transported to Liverpool Hospital and were in a stable condition, staff told the BBC. One of the men underwent emergency surgery, while the second suffered superficial wounds to his lower body.
Reports from media at the scene said the man was believed to be using an automatic rifle. Photographs show heavily armed police surrounding the Inline National Signage factory, and what appears to be a body underneath a white sheet on the sidewalk.
A man was arrested at the scene, but police said he was detained for "hindering" the investigation.
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