A large fire at the Envirocom premises, Spitalgate Level, Grantham, is now under control, says Lincolnshire Fire and Rescue Service.
South Kesteven District Council’s environmental health team has been at the scene as part of a multi-agency response and all are working with local companies to help them resume normal business as soon as possible.
The blaze broke out inside the building early this morning and eight appliances from Lincolnshire and Nottinghamshire were at the scene.
An estimated 20 tonnes of plastic waste was on fire and thick black smoke was coming from the building.
People living in the area, particularly those at Cheveley Park, and staff at nearby businesses are still advised to stay indoors and keep windows and doors shut.
The B1174 remains closed in both directions and police cordons are in place.
People are being asked to avoid the area.