Police are investigating a deliberately lit fire at Neville Smith Forest Products in Mowbray last night where high grade timber valued at $800,000 was destroyed.

The Tasmania Fire Service responded to the fire on Remount Road at around 10:40pm and were confronted by an intense fire which had engulfed 240 racks of timber in the middle of the yard.

At the time of writing the fire is still being extinguished by firefighters.

TFS conducted a fire investigation this morning and determined the fire was deliberately lit.

Anyone with information in relation to the fire, or who saw anyone acting suspiciously in the area last night is urged to contact Crime Stoppers, which can be done anonymously,  on 1800 333 000 or crimestopperstas.com.au