The blaze broke out in a barn containing fibreglass, chemicals and plastic at Kingsnordley, between Bridgnorth and Stourbridge, at around 11.53am on Friday.
Photos and video from the scene show huge flames and thick black smoke coming from the barn, before an explosion sends a fireball into the air.
The bang was heard several miles away, with reports of it being heard in Bridgnorth, Quatt and Upper Farmcote.
There has been a major emergency response to the fire, with an air ambulance sent to the scene and one man taken to hospital with "potentially serious" injuries after suffering burns.
The fire is on a site which houses a number of businesses, including Kingsnordley Fisheries and Severn Edge veterinary group, which has an equine clinic. However, the blaze is not thought to be at one of equine clinic's buildings.
Shropshire Fire and Rescue Service scrambled five fire engines and four special equipment appliances to the area shortly before midday.
They were also being supported by crews from West Midlands, Staffordshire and Hereford and Worcester fire services.
Witnesses from miles around shared photos and videos of the fire as they reported hearing the explosion.
Claire Ashmore from Broadlanes, in Six Ashes, around a mile away from the blaze, said: "We saw several balls of fire with big bangs and obviously the bellowing smoke.
"We saw the air ambulance and have seen from social media that one person has suffered burns".
Meanwhile the owner of a nearby tearoom described their lucky escape after hearing two "massive" explosions.
A Shropshire Fire & Rescue Service spokesperson said crews were called at 11.53am, with firefighters from Bridgnorth, Telford, Tweedale, Craven Arms, Prees, Wellington, Shrewsbury and Albrighton all sent to the scene.
"One man has suffered minor burns and smoke inhalation and has been taken to hospital by ambulance," they said.
"No animals are involved in the incident, but there are a number of chemicals in the building. We have been working closely with the Environment Agency to assess the water run off and the impact of the incident."
In a statement, West Midlands Ambulance Service said paramedics were called to the fire on Kingsnordley Farm Junction and sent a one ambulance, a paramedic officer, the Hazardous Area Response Team (HART), the Midlands Air Ambulance from Strensham and a Community First Responder (CFR).
A spokeswoman said: "Upon arrival we found a man. He was assessed and had sustained potentially serious injuries.
"He received treatment on scene and was conveyed to Russells Hall Hospital for further assessment.”
The blaze has closed multiple roads in the area, including the A442 - which runs between Bridgnorth and Kidderminster and the A458 - from Bridgnorth to Stourbridge - in and around Quatt and Wooton.
Police are advising motorists to find alternative routes while those living nearby have also been asked to keep windows closed due to the "considerable smoke plume".