Around 40 firefighters tackled a large blaze on Benington near Boston in the early hours of the morning.
The large building fire is on West Road in the village.
Eight pumps, an aerial ladder vehicle, and supporting crews were mobilised to the blaze.
It is reported to be at T H Clements which is based there.
Crews used breathing apparatus and hose reels to tackle the fire, according to the initial report via Twitter from Lincolnshire Fire and Rescue Service.
The most recent update, which came at around 5.53am this morning, said steady progress is being made by crews.
One poster on on Emergency Community Group (Boston) said: "Major fire at Clements in Benington.
"Smells very strongly of burning plastic can smell it inside my house in Leverton. Firefighters are on site, 11 trucks there as told by 999. Advising people in the area to keep windows closed due to the plastic smell."
Rachel Gedney, HR manager for TH Clements, said it was believed the fire started around 2am and the emergency services were on the scene by 2.30.
“It’s one of our side buildings which is used as a packaging and archive store,” she said.
“There was no one in the building. There were people working on site, but not in this particular building.”
She said the building had been badly damaged and would be coming down.
It was one of the smallest on site, but contained a lot of paper and cardboard, which was why there had been so much smoke.
The Environment Agency have been on site this morning, and had said they were not concerned about any emissions.
Firefighters were due to be on site for the rest of the day.
Rachel said the company was operating as normal, although they might face some packaging issues in the next few days.
Employees were coming in via the back entrance because of the location of the fire-hit building.