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Nine crews from fire stations across the city and county were called to the incident in Beaumont Leys just before 10.45am.
Eyewitnesses at the scene said the fire was on the Walkers site in Leycroft Road, Leicestershire Live reported.
Smoke can be seen billowing from the roof of the building.
A spokesperson for Leicestershire Fire and Rescue Service said: “We received a call from the site stating that the factory filling with smoke, with the roof possibly on fire.”
The factory has been evacuated and there have been no injuries, the fire service said.
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