Two Israelis were killed and another was injured in a shooting attack in the occupied West Bank on Sunday, Israeli media reported.
The woman, 54, was taken to hospital, where her condition was stabilised.
Security footage shows the shooter fleeing, still armed with a rifle.
Military spokesman Lt. Col. Jonathan Conricus said the preliminary finding is that a 23-year-old from a nearby village carried out a "terror attack" in the Barkan industrial zone near the settlement of Ariel before fleeing the scene.
Conricus said the attacker was employed in one of the factories and had a valid working permit.
Naalwa used a homemade gun, known locally as a "Carlo", according to the army, in what security forces believe was a "lone-wolf attack", meaning he was not part of a militant organisation or acting on its behalf. A 12-year-old boy was among the dead.
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Israeli Prime Minister Benjamin Netanyahu said troops would soon apprehend the "despicable murderer" and "bring him to justice".
The army called the shooting a "terrorist attack", adding however that other unspecified factors were involved.
The suspected assailant worked at the park, which employs both Israelis and Palestinians.
Israeli President Reuven Rivlin said: "This was not only an attack on innocent people going about their daily lives, it was also an attack on the possibility of Israelis and Palestinians co-existing peacefully".
Speaking at Barkan, Yossi Dagan, head of a regional council for Israeli settlements in the area, said there were "Jewish and Palestinian workers standing outside together and crying".
More than 600,000 Jews live in about 140 settlements built since Israel's 1967 occupation of the West Bank and East Jerusalem.