Two 12-year-old boys have been charged with setting fire to a tyre yard on Sunday morning.
The industrial fire at Michelin Tyre Dealers caused the evacuation of 20 people at 9.46am.
An hour later, two boys were picked up by ACT Policing on Canberra Avenue, Queanbeyan duty officer Inspector Tony Hill said.
Detectives from Queanbeyan questioned the boys at Civic Police Station on Sunday afternoon.
One of the boys was refused bail to appear before the Queanbeyan Children's Court on Tuesday. The second boy was granted bail and will appear in court next week.
Both boys have been charged with maliciously causing damage by fire in company.
Andrew Douglas, who owns the yard, estimated the fire had caused at least $120,000 worth of damage. Queanbeyan Inspector Neil Grey said on Monday said the damage would exceed $250,000.
However the damage bill could have been far worse had firefighters not contained the blaze to the back of the yard.
"We're extremely lucky," Mr Douglas said. "If it had got to the main warehouse we'd be finished."
Mr Douglas was alerted to the fire by the people who run the laundromat across the road. He said witnesses had told him a couple of young people had been leaving the tyre yard just before the fire broke out.
He said the effect of the fire on his business would be devastating in the busy pre-Christmas period.
"This is the busiest time of year and everyone is playing catch-up because of all the recent rain," Mr Douglas said.
Queanbeyan Fire Station commander Jason Murphy said firefighters had been forced to take cover and fight the fire defensively after explosions were heard coming from the area.
"The fire was spreading into the building but once we contained the tyre fire we had to extinguish it," Mr Murphy said.
"The roof had solar panels on it and had collapsed so we had to pull everyone back for a bit until the Bronto arrived because those panels were still live."
Stephens and Lorn Roads were closed as of 1pm and police have established a crime scene, which was examined by forensic specialists.
"Members of the public suffering from respiratory conditions are advised to avoid the area," NSW police said.
NSW and ACT emergency services extinguished the fire about noon, before conducting clean up operations in the afternoon.
"Crews were alerted to the incident on Stephens Road at 9.46am and arrived to find the building, along with a large number of tyres, well-alight," the ACT Emergency Services Agency said in a statement.
ACT Fire & Rescue sent three fire trucks, a CAFS foam unit, breathing apparatus support, the Bronto aerial appliance and a commander to help the two Fire & Rescue NSW fire truck teams.
Authorities do not believe anyone has been hurt in the incident and no homes were affected.
Fire fighters battle blaze at the back of tyre shop in Queanbeyan. pic.twitter.com/r8nDWzNzwU
— Jesse Dorsett (@jessedorsett) November 19, 2016
