A man carrying a flag with Arabic writing on it has been beheaded and at least one other person injured in a suspected terrorist attack on a gas factory near the French city of Lyon.
According to regional daily Le Dauphiné Libéré, the attacker entered the Air Products-owned factory in Saint Quentin Fallavier, about 30km southeast of Lyon, claiming he belonged to the Islamic State (IS/ISIS) group.
A male suspect in his 30s thought to be the person who carried out the attack has been arrested by police.
No other details were immediately available from what is said to be a shocking and chaotic scene.
A terrorism investigation has been opened by France's anti-terrorism prosecutor.
Interior Minister Bernard Cazeneuve is at the scene.
French president Francois Hollande, who is in Brussels for the EU summit, confirmed the attack, saying gas canisters were used in the attack with the purpose of exploding the building.
Australian Foreign Minister Julie Bishop said from Melbourne that early evidence indicated it was a terrorist attack and it showed Australia had been correct to increase its counter-terrorism resources.
"It reminds us that we must be ever-vigilant about the possibility of a terrorist attack in Australia".
"That is why the Australian Government is expanding our security, law enforcement and intelligence agencies to deal with these risks."
