[Wugu District, New Taipei City, Taiwan] Four people were killed and 21 others injured in an explosion Friday at a "ghost money" factory in New Taipei City in northern Taiwan, the police said.

Initial investigation showed the explosion might have been caused by firecrackers and fireworks stored in the factory which makes fake paper money burned by Taiwanese at rituals to pay respects to the deceased.

A huge fire rapidly engulfed the corrugated-iron factory and its surrounding area, setting a car passing by on fire and killing its driver, said Huang Teh-ching, director of the city's Fire Department.

Two of the dead were male, one was female and the fourth victim was scorched beyond recognition, according to the police.

A total of 25 cars were damaged, of which eight were destroyed by the fire, which also affected nine buildings nearby, according to the police. (By Sunrise Huang, Wang Hung-kuo and S.C. Chang) enditem/jc