The industrial facility, located near Inverness airport, is used for chipboard and plyboard production. It is known among locals as the “cloud factory” because it normally produces loads of water vapour.
A local resident, 24, from neighbouring Nairn, told Express.co.uk:
“I think it’s absolutely devastating. It’s a well-loved place.
“It’s been known as the ‘cloud factory’ for many generations as many people see it every day on their way to work whether on the train, road or plane.
“It also provides many jobs. I’m worried about what this means for the local community.”
A resident with the handle @Duffers1957 posted a picture of the fire on Twitter with the caption: “Norboard on the A96 between Inverness and Nairn…..not good.”
The blaze is visible from miles as seen in the picture.
Scotland Fire and Rescue Service is operating at the scene to extinguish the fire.
The service confirmed they had a first call for the fire at 15.41pm.
The cause of the fire is still unknown.
A Scottish Fire and Rescue Service spokesperson said: “We were alerted at 3.41pm on Thursday, July 7 to reports of a fire affecting a commercial property chimney off the A96 near to Dalcross, Inverness.
“Operations Control mobilised seven fire appliances and one height vehicle to the scene and approximately 40 firefighters are tackling a fire affecting the building.
“There are no reported casualties at this time and crews are still at the scene.”