Meanwhile, Palestinian group Fatah said Israel's denial of Palestinian rights was the cause of such attacks.
President Reuven Rivlin lamented the loss of life as well as the wider cost of an attack at a place where Israelis and Palestinians work side by side. I don't believe it was one of the Palestinians who just woke up in the morning and took a gun to shoot an Israeli.
The individuals were arrested for "suspected involvement in popular terrorist activities", the army said in a statement, without elaborating on the nature of these activities. Murderer Muhannad Halabi stabbed and killed two Israelis in the Old City of Jerusalem in 2015.
They were identified by Israeli media as Kim Levengrond Yehezkel, a 28-year-old from the Israeli town of Rosh Haayin near Tel Aviv, and Ziv Hagbi, 35, from Rishon Lezion, also near Tel Aviv.
Barkan industrial park is next to the settlement of Barkan and was established in the early 1980s. "Everybody knew him. He went upstairs to the second floor because he knew who he wanted to shoot, and he shot", he said. "We do not know if he plans to carry out another terror attack or if he is just fleeing, but we assume he is still unsafe".
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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".
Disengagement from Israel will come in strides until there is a total separation in the relationship with the Occupying Power, member of the Executive Committee of the Palestine Liberation Organization (PLO) Ahmad Majdalani said on Monday.
"Israel's policy against terror must be zero tolerance on all fronts. Until now the circumstances are not clear, but for Israel the most important thing is to make accusations of an operation under nationalist circumstances, knowing that according to how the operation was carried out there are doubts", he wrote.
The report stresses that for "months" from the Gaza strip started burning balls.
Hamas, the movement that runs the Gaza Strip, welcomed the attack and called it a "natural response to the crimes of the Israeli occupation".