The city of Huiyangs packaging plant is on the verge of being evacuated after a fire broke out at a new production line, China’s state news agency Xinhua said.
The fire was reported at around 1:00pm local time (13:00 GMT) in the industrial area of Huijin city, about 100km (60 miles) northwest of the city, the agency said.
There were no immediate reports of injuries.
“The fire department has dispatched three teams and dispatched rescue workers to the site, and they will work to extinguish the fire, Xinhua added.
The Huiyins factory is one of several in the city that are under scrutiny by local authorities in light of a spate of fire incidents in recent years.
Last year, the Guangdongs government ordered a closure of five other plants after inspectors found they were unsafe and dangerous.
The city’s fire department said it had been asked by the local fire department to shut down the plant, but said it was too early to tell whether that would happen.
Huiyin is home to the China National Tobacco Corporation, one of China’s largest tobacco companies, which is also known as CNOOC.