Part of an iconic former factory in Kidderminster has been destroyed in an arson attack – prompting calls for the site to be redeveloped as a matter of urgency.

A gang of youths was seen running away from the former British Sugar Beet Factory in Stourport Road as the blaze in an outbuilding took hold at around 6pm yesterday.

The wooden structure was burned to the ground.

At the height of the fire, four engines and around 20 fire fighters were in attendance. Crews from Kidderminster station were forced to call for back up.

Smoke billowed from the site, prompting a flurry of calls from worried members of the public.

The site has been earmarked for a major business park development that, if realised, would create up to 2,000 new jobs.

But developers have admitted the scheme could take up to 10 years to come to fruition and there are now fears it could be further delayed by the recession.

The building has been part demolished since the factory closed in 2002 after 76 years of sugar processing. It is currently being cleared to try to attract a buyer.

Oldington and Foley Park councillor Susan Meekings said she was desperate to see the site brought back into use. She said: “For as long as it stands empty though, it will be a target for vandals – something needs to be done with the site.”

Wyre Forest District Council’s tourism boss Steve Singleton said the council was working with land owners Cill Dara to try to finalise plans for the land.

Police are investigating the blaze. Anyone with information should call 0300 3333000 or Crimestoppers on 0800 555 111.