A MAJOR fire at a North-East industrial estate continued to burn into the early hours of this morning -two days after the blaze started.

Crowds of people turned out to watch on Monday evening as flames leapt 70ft into the air after 500 tonnes of rubbish and wooden pallets due for recycling at the Justwood yard, on the Alliance Industrial Estate, Darlington, caught alight.

Although the brunt of the blaze had been brought under control by yesterday morning, the fire brigade said it would have to stay at the scene until the fire burned itself out and while controlled burning was carried out.

The brigade said it was safer to make sure all the wood had burnt away, to reduce the chances of it re -igniting. Although the cause of the blaze has not yet been determined, Justwood manager Tony Shepherd said he thought the fire had been started by children.

He said he and owner Michael Davies were devastated and that the fire had cost them thousands of pounds because they were uninsured. He said: "This is a major blow. It was about £3,000 worth of wood, which is probably about £1,000 in profits. We are not insured because you cannot get insurance for a wood yard."

He said he was angry and added: "This was no accident. It happened at 6pm and that is a funny time for a fire to start.

"If it was not kids coming through the fence, I do not know how it could have started."

Yesterday, the fire service and the police said they were not yet investigating any suspicious circumstances, but said arson could not be ruled out until the fire has been extinguished and experts have examined the site.

Justwood employs seven people at two yards in Darlington and Shildon, County Durham.

Yesterday, the Environment Agency reassured people that the blaze, which could be seen for miles around the town, had not polluted the River Skerne.

The fire brigade had to bring in a pump to take water from the river to dampen the flames, and the run-off water flowed back into the river.