A paper storage facility in Sydney’s east was engulfed in flames this afternoon with embers igniting several cars in a nearby carpark.

The factory is on the corner of Botany Road and Bumborah Point Road in the industrial area of Matraville.

The fire spread to a nearby car park on an adjoining street, setting at least seven cars on fire, which have since been extinguished.

A factory on the corner of Botany and Bumborah Point Road in Matraville has set alight.The factory is on the corner of Botany and Bumborah Point Road in Matraville. (Nine)

Superintendent Adam Dewberry from Fire and Rescue NSW said the fire was classified as a “six-alarm fire” with 20 firetrucks and 80 firefighters arriving on scene.

The fire has been reported as surrounded and under control, with all staff safe.

The fire was driven by strong winds blowing from the south-west.

Cars on fire after a factory fire in Matraville.Cars in nearby streets have also set alight. (Nine)

As smoke continues to engulf the area, emergency services are advising people to avoid the area and keep doors, windows and vents shut.

The six alarm fire has tore through a paper storage facility in Sydney's east.The six alarm fire has tore through a paper storage facility in Sydney’s east. (Nine)

Firefighters are investigating reports that the fire has ignited multiple cars near the scene.