Flames shot 50ft high over Bridgeton following the fire at the rundown plant in Newhall Street.
Firefighters were quickly on the scene when the blaze broke out shortly after 7.30pm last night and crews were still at the scene during this morning rush-hour.
The firefighting operation has caused traffic chaos in the area and this morning Newhall Street remained closed off as a precaution with diversions in place.
A probe has been launched into the cause of the blaze near the River Clyde at Glasgow Green. It is feared the building is now unsafe and a nearby public walkway has been cordoned off. There are other restrictions around King's Drive and the busy Main Street.
Three fire appliances from Calton and Polmadie Community Fire Stations moved in quickly after several phone calls alerted them to the incident.
However, as the fire had already torn through most of the single storey building there was little they could do to save factory.
Fire chiefs were concerned that the blaze could spread to adjacent factory buildings.
Reinforcements were called in when it was realised that one firm sited on the same street is Apple Fuels, a company which runs a biodiesel business from it's yard.
At its peak the blaze saw flames leap high into the night air and thick palls of smoke could be seen from miles away.
The fire was eventually brought under control, but fire crews are expected to remain at the scene throughout today.
Glasgow City Council's building control department have been asked to assess the damage to the building though it is thought it the structure, which is opposite a children's playpark may have to be pulled down.