Old asbestos factory 'kills' 16 Melbourne residents

At least 16 people from one Melbourne suburb have reportedly been killed by a deadly asbestos factory that closed in 1983.

The owners of the former Wunderlich factory in Sunshine North have been paying compensation to victims, the latest of which died on Thursday, the Herald Sun has reported.

At least 16 people who grew up in streets near the factory have died of asbestos-related diseases, with another eight believed to be sick.

None of the victims worked in the plant.

Residents who lived in the area during the factory's boom days from the 1950s-70s said asbestos would be visible in the air and would coat cars and windows.

After being informed of the deaths by the Herald Sun, the Victorian Health Department has ordered an urgent investigation into the matter.

"Contamination of any site with asbestos or any other potentially carcinogenic material is a concern and residents should seek expert advice if they suspect there are loose ­asbestos fibres or broken asbestos sheeting in their home," a spokesman said.

The victims have all lived within a 1km radius of the old factory - an area encompassing about 2000 homes.