Paramilitary troops found wires, detonators and mixers to turn the chemicals into bombs during yesterday's raid in the city of Quetta, a flashpoint for sectarian, Islamist and separatist attacks.
Eleven people have now been arrested in connection with the case and the owner of the compound has been detained for questioning, said a spokesman for the paramilitary Frontier Corps (FC).
Suspects told investigators that potassium chlorate and ammonium chlorate had been packed with wires and detonators into vehicles at the compound, a paramilitary official said.
"We have recovered a machine which is basically a mixer, used to mix chemicals to make bombs. We have recovered sulphur and hundreds metre of wire," said the FC spokesman.
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"We have also recovered 79 remote controls and short circuit wires. Some 20,000 kilograms of explosive were ready at the factory and just needed to be fitted into vehicles," he added.
On January 10 and February 16, bombers killed nearly 200 people in attacks on Shiites from the ethnic Hazara minority in Quetta.
It has also suffered from attacks blamed on Taliban militants and in 2004 Baluch rebels rose up, demanding political autonomy and a greater share of profits from the region's mineral resources.