A van driver who was investigated for links to Islamist radicals has attacked a gas factory near the south-eastern city of Lyon, a French prosecutor says.
Yassin Sali, 35, caused an explosion by ramming his car into an area containing flammable liquids and was arrested at the scene, Francois Molins said.
Mr Sali's boss, the owner of a delivery firm, was found beheaded alongside flags containing Arabic inscriptions.
The attack put France back on to its highest terror alert.
An investigation has been launched by French anti-terror police.
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