Sydney chemical firm raided in drug bust

A drug precursor with the capacity to churn out $30 million worth of ecstasy tablets has been seized after police busted a chemical supply business in Sydney.

Customs officials allegedly discovered 150 litres of brown camphor oil containing safrole - a precursor used to manufacture MDMA - in an air cargo shipment from China last month.

Its alleged the oil was on its way to Elysium Laboratories, a western Sydney chemical supply business.

Police will allege the business was a front for "the diversion and use of chemicals" to produce drugs.

Detectives will allege the camphor oil had the capacity to produce about one million ecstasy tablets.

"We're confident today's raid will stifle the supply of pre-cursor chemicals and equipment to a number of drug manufacturers," Detective Superintendent Tony Cooke said.

"..and, in turn, will have a direct impact on the supply of 'ice' and MDMA on the streets."

Drug squad officers raided the business at Chipping Norton in Sydney's southwest on Wednesday after arresting the 24-year-old registered business owner.

The large-scale raid is expected to stretch out over a few days.

Police allege they have already seized chemicals and glassware linked to drug making.

The arrested man, a chemical engineer, has been charged with drug manufacture and supply offences.

He is expected to appear in Burwood Local Court on Wednesday.

Det Supt Cooke said Wednesday's bust was merely a battle in an ongoing war.

"Clandestine laboratories and the criminal groups who run them continue to operate in suburbs, towns and cities throughout this state, polluting our streets with poison and ravaging many thousands of lives," he said.