The 43-year-old man arrested on Wednesday in connection with a fire at a paper processing factory in Ypsonas, Limassol, earlier in the day, has been remanded for seven days.

The suspect was taken before a court on Thursday, facing charges of arson and causing malicious damage.

The owner of the factory told the police that he suspected arson by the 43-year-old, a former employee.

According to the police, the suspect had differences with the 75-year-old owner and had allegedly threatened him on several occasions.

The court heard that the suspect had quit his job about a year ago and had recently requested to be rehired, which the owner dismissed.

The rejection appears to have enraged the suspect, who a fortnight ago at a local coffeeshop had threated the owner that he would “burn you alive”.

He also allegedly moved aggressively towards the 75-year-old, however people present stopped him.

The 75-year-old reported the incident to the police and the suspect was cautioned.

The court also heard that about a month ago the suspect had allegedly caused damage to a car belonging to the factory.

The police secured a statement that the suspect had been seen leaving the area of the factory.

The suspect denied having any involvement in the case.

He argued that the 75-year-old owed him money and that was the reason he was aggressive in the coffeeshop.

However, he denied causing damage to the factory vehicle and maintained that when the fire broke out on Wednesday he was at home close by.

Meanwhile, the exact cause of the fire has not been determined as fire service officers have not managed to enter the building yet.

The factory and its equipment were completely destroyed in the blaze.

Two houses in close proximity to the factory were also affected by the fire.

The fire had broken out at around 2am, prompting fears that it may spread into nearby residential areas.

As such, local residents were evacuated and the road connecting the motorway between Limassol and Paphos and the suburb was also closed as a precaution. The road was then reopened later in the day.

Firefighters were reported to have been in “real danger”, as the fire had spread to gas cylinders which were being stored in the area, causing continuous explosions.