Emergency services were called to the scene at arrived North Bay Pelagic on Kirk Square in Peterhead around 3pm after a fire was ignited in the factory’s packaging room.
Six fire engines – from Aberdeen, Peterhead, Altens, Fraserburgh and Ellon – have been called to the site.
A fork-lift truck is being used to dismantle a wall to allow fire crews to access cannisters containing ammonia.
The flames and smoke can be seen for miles in either direction, including from inside Peterhead’s Balmoor Stadium.
Hundreds of people have been looking on firefighters battle the massive blaze, however, many have now taken shelter inside their homes as ash falls from overhead.