Fletcher Building says the fire at its medium density fibreboard plant in Taupo will see it out of action for several months.

The factory was badly damaged in the blaze, which broke out at around seven o'clock last night.

The company says it has alternative sources of supply, including from its Australia operations. The particle board plant that operates on the same site escaped damage.

Fletcher Building says it is fully insured and does not expect the fire to have any material impact on its financial results.