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Chaos in central Sydney as massive fire engulfs building, and sparks collapse

Authorities are investigating what sparked a massive fire inside a heritage-listed building in central Sydney on Thursday, after an afternoon of chaos.

More than 120 firefighters and 30 trucks were sent to Surry Hills about 4pm, where flames erupted from within the multi-storey building on Randle Street.

Several neighbouring towers were evacuated as firefighters battled the blaze which has gutted the former RC Henderson hat factory.

People began screaming as bricks and large chunks of walls started crashing to the ground.

Shortly before 6pm, NSW Fire and Rescue NSW Acting Commissioner Jeremy Fewtrell said the blaze had been contained and that there were no major injuries sustained.

He said while the flames had made their way into nearby buildings, firefighters had extinguished them.

"I'm pleased to report there has been no indications of any injuries to members of the public," he said.

"It will be a substantial and very prolonged duration of firefighting to extinguish the fire completely so I suspect that we will be here all night and into the morning."

Earlier, Fire and Rescue NSW Superintendent Adam Dewberry said the fire began on level three of the building.

"We got the fire on the third level of what we believe is a seven-level block we have people evacuating and firefighters entering this building to fight this fire," he said.

There are 20 fire trucks at the blaze in Randle Street, Surry Hills. (ABC News: Harriet Tatham)
Parts of the building have started to collapse. (ABC News: Harriet Tatham)

There were major road closures in the area around Randle Street, as firefighters attempted to douse the flames.

Transport authorities said buses were diverted in the Surry Hills area due to the fire. The light rail has also been halted.

The building, which is seven storeys high, was set to be turned into a hotel, according to a development application lodged with the City of Sydney by developer Hanave Pty Ltd.

A member of the Henderson family, which built the factory in 1912, rang ABC Radio to share its history. 

James Henderson’s aunt Elizabeth, the daughter of company founder Rolla Crosley Henderson, used to work there as a saleswoman.

“She’s totally beside herself, she’s in her mid-90s."

Bystander Chiara told the ABC she was at the nearby TAFE when she saw the fire.

"The flames were about the size of this hospital here. Ten minutes later the wall just collapsed. It got pretty wild," she said.

"I was very nervous. I was pretty scared when I seen the wall fall. I was going to get out of here.

"The smoke was very dark and it was really full on."

This ute was collateral damage as the blaze took hold. (Supplied: Fire and Rescue NSW)

Corrin Ellis was on his way to catch a tram when saw the tower ablaze.

"All you could feel when standing here was heat on your face from the flames," Mr Ellis said.

"And when they started to move us back, a car just in front of the building caught fire."

"The tires were exploding about 30 seconds after that."

"The front of the building collapsed and flames just spewed from the top of the building."

Collapsing walls threw debris onto Randle Street. ( AAP: Dean Lewins)

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