Nepal's biggest textile factory Reliance Spinning Mills has been forced to shut down after Maoist guerrilla rebels attacked it with homemade bombs.

The attack was carried out on Saturday by about 20 armed men at Sunsari, which is 460 kilometres from the country's capital, Kathmandu.

Nobody was hurt in the attack, which was carried out because the company refused to provide 'donations' for the Maoist party, reports said.

The attackers bombed the factory's control room and two warehouses, starting a violent fire which raged out of control until Sunday.

Over 2,600 labourers work at the factory, which was subjected to approximately NPR350 million worth of damage, it has been suggested.

Reliance Spinning Mills exports cotton yarn goods to India.