In a report, local media outlet NOS said the fire erupted at around 9.30 p.m. on Friday night at a plastics facility, which soon spread to a timber yard and a furniture store, completely gutting them.
According to the fire service, it will take hours to completely douse the massive blaze and as of Saturday morning, it was still raging.
Images and footages of the fire showed large plumes of smoke covering a large area.
The NOS report said that explosions were also heard which the outlet attributed to gas cylinders from forklift trucks.
The fire service has asked people to stay away from the site as ash particles falling due to the blaze can be very dangerous.
In addition to ash particles, pieces of glass from solar panels which are very sharp, can also lead to serious injuries, it added.
People living nearby have been asked to close windows and doors and turn off mechanical ventilation.
It remains unclear if there were people in the facility or how the fire erupted.