Israeli helicopter gunships destroyed a metal foundry in Gaza late last night, one day after a similar air strike against what the army said were weapons workshops used by Palestinian militants.
Palestinian witnesses said one person was injured in the attack, which occurred in a crowded residential area of Maghazi refugee camp in the central Gaza Strip. The witnesses said the workshop was completely destroyed.
An Israeli army spokesman said the foundry, along with two others the military had struck on Friday in Gaza City, had been used by Hamas and other militant groups to produce rockets and other munitions to use against Israeli towns.
A family who owned the workshop denied it had been used to manufacture weapons and said it served as a mechanical workshop and was also used to store wood for construction.
The attack came hours after rockets fired from Gaza landed in a Jewish settlement in the area and also inside Israel. On Friday, militants fired a rocket at a southern Israeli town. No casualties were reported from the attacks.
Palestinian ambulances rushed to the scene as hundreds of neighbours filled the streets in panic and men shouted: "Allahu Akbar (God is greatest)" and "This is injustice." Blocks and parts of debris from the zone flew in the air from the blasts.
Palestinian policemen screamed at residents in the area to leave. They said a third missile did not explode.
"We saw the helicopters," said Abu Ahmed, 45. "We expected that someone would be assassinated and hoped it did not happen.
Now it is clear it was a workshop. It was an act of sabotage.