The Royal foam factory at Ayigya in the Oforikrom Municipality of the Ashanti region.
The fire is said to have started from the production room of the factory and has spread to all parts of the factory.
The cause of the fire is not known however, residents have resorted to quenching the fire with bags of water to complement the effort of officers from the Ghana Fire Service.
As at the time of filing this report, seven fire tenders had been brought to the scene.
Officers of the Fire Service have managed to douse the fire but said they will investigate managers of the company for operating without meeting safety requirements.
Ashanti Regional Operations Officer, DOII Francis Darko-Kono tells JoyNews the absence of fire hydrant to provide personnel with constant supply of water to assist in dousing an inferno that ravaged the production unit of the company affected their work.
"Whatever they use to produce foam has petrol-chemical base which is highly flammable," he said, adding that this makes meeting fire requirements before commencing production a must.
"We have been able to cut the spread from getting to other areas which will cause havoc to the premises. One of the biggest challenges is lack of water at the premises. They should have a hydrant. It's a big company and they should have a hydrant installed here.
"We could not see a hydrant so anytime we run short of water, we have to move out to go and fetch water and then come. It is a bigger challenge because every fire needs water; you need water to do the combating and since the continuous flow wasn't there," he lamented.
He said investigations will be conducted into the incident and the company would have to answer to why they are operating without the requisite safety conditions.
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