The fire started at around 2.40pm, and 15 fire crews initially attended the scene at Helmswell Cliff to fight the fire. The cause of the blaze is not known but police are not treating it as suspicious.
AWS had recently invested £14 million into the plant, which the firm claimed to be one of the most technically advanced plants in Europe. It had been certified to produce food grade material from waste plastic a few weeks ago.
The whole of the industrial estate was evacuated, including a nursing home situated nearby.
Today, the fire is under control as fire fighters attempt to put it out. Lincolnshire Police reported that police hope to facilitate access to the industrial estate for workers in nearby businesses, if possible. The police and fire crews intend to stay in attendance over the next couple of days until the fire is completely out.
Lincolnshire Police spokesman Dick Holmes said: “The good news is that so far it appears that no-one is hurt or injured in any way.
“There are various propane gas cylinders that have been exploding from time to time. The problem seems to be the smoke, which is quite acrid.”