Shooting, hostage taking in Australia

Three people have been shot and several are believed to be being held hostage at a factory on the outskirts of Sydney, Australia.

Police at the scene of a shooting and hostage taking in Sydney. Photo: Reuters

A man believed to be armed with an automatic rifle has barricaded himself inside a factory in Sydney's south-west after opening fire on three people this morning.

Australian media reported that a 43-year-old man died at the scene and two injured people were taken to hospital.

Several people are also believed to be being held by the gunman inside the factory.

"Negotiators and tactical response teams are on the scene and trying to gain access to the building," a police spokesman told Reuters. He declined to confirm whether any hostages were inside.

A panicked woman is helped away from the scene. Photo: Daily Telegraph

A man was arrested for "obstructing" police while the gunman remained inside the factory, the Daily Telegraph reported.

Shaun Cooper, who works across the street from the building, said two of his colleagues heard five gunshots.

"The police were there within three or four minutes," he said, adding that he saw them remove a body from the building and two others being taken away.

One person was arrested at the scene. Photo: AAP

An office worker across the street said police asked people to stay indoors.

In December 2014, a gunman claiming allegiance to the Islamic State (IS) militant group took 17 hostages at a cafe in central Sydney. He and two hostages died in the final minutes of a 16-hour hostage-taking and rescue operation.

According to VNE