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Fire and Emergency New Zealand (Fenz) was called to the incident at 5.30pm, where they found the fire to be burning in a 10 meter by 10 meter area of recycled material bails, a Fenz spokesman said.
The fire was under control before 8pm.
A fire investigator will conduct an investigation into the origins of the fire tomorrow, possibly accompanied by police.
The matter is being treated as suspicious, the spokesman said.
It is the second suspicious fire being investigated in Oamaru today after a series of fires were set at Glen Warren Reserve this morning.