The industrial area near the now-closed Israeli Karni crossing was established to facilitate exports from both sides, but the Israeli authorities closed it for security reasons.
Official sources in Gaza told the local news agency Ma'an that sheds and shelters formerly used by Palestinian Authority security forces before 2007 were also demolished during Thursday's incursion.
The official who preferred to remain anonymous said that he was miffed by the move, adding that demolition had been carried out "despite the fact that this place is calm and there have been no military operations by Palestinian factions from the industrial area."
An Israeli military spokeswoman said she was looking into the report.
The Israeli authorities decided on March to permanently close Karni crossing, and said that transport equipment would move to Kerem Shalom in southern Gaza Strip.
After Hamas movement took control of the Gaza Strip in June 2007, Israel decided to close all crossings with Gaza, but the Karni crossing was opened twice a week for the import of grains and construction materials.
