Police have arrested a 52-year-old man in relation to a firearms incident near Whangarei.

On Monday morning police received reports of bullet holes being found in a shed and tank on the Fonterra dairy factory site at Kauri, north of Whangarei.

Later that morning a member of the public reported hearing shots being fired from somewhere outside the factory grounds.

Police attended the incident and following an investigation arrested the man.

He appeared in the Whangarei District Court on Tuesday charged with unlawful possession of a military style rifle and was remanded in custody.

The man will be appearing in court again tomorrow where he is likely to be facing more charges.

Source: New Zealand Police.