ACRID smoke from chemicals billowed into the air as firefighters tackled a blaze at a car upholstery factory.
The fire started at Croftgate Car and Leather Care at Newhallhey Business Park, Rawtenstall, yesterday afternoon.
Smoke could be seen across the valley and crowds of onlookers, including children, were kept away from the site by firefighters and police who closed the road.
Pools of contaminated water had to be pumped out later under supervision by the Environment Agency.
It is believed some chemicals were being heated when part of the heater broke and set some oils alight.
The unit was used for car valeting and upholstering and contained a variety of solvents and polishes.
Fire engines from Rawtenstall, Bacup, Haslingden and Accrington were brought in to tackle the blaze.
Eye-witness Mrs Joan Simpson said: "My husband Charlie and I were driving from Helmshore to Kwik Save and we could see the smoke so we came to have a look. "When we got here there was horrible smoke everywhere and the firefighters were using a chain saw to cut through the door of the factory next door."
Fire Incident Commander Stuart Tracey said: "We isolated the gas and electricity supplies as the gas pipe had come out.
"The units themselves have fireproofed walls but at one stage we thought the fire was going to spread through the roof, but we managed to get it under control."
Most of the contents of the unit were destroyed, including a set of 1950s Ferrari car seats.
Smoke seeped into neighbouring units which had to be ventilated by the fire brigade.
Mr Tracey added: "Because of the solvents in the unit, the water we used to fight the fire was contaminated."
Firefighters sealed off the drains and waited for the Environment Agency before removing the polluted water.
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