The blaze was reported at Midwest Padding about midnight. No injuries were reported but several roads were closed as fire departments from Norfolk, Hadar, Pierce, Stanton and Madison helped fight the fire.
Norfolk Fire Chief Shane Weidner said flames were shooting about 30 feet into the air when fire crews arrived at the scene.
The blaze spread quickly after starting during the manufacturing process, in which the raw materials of the padding are melted together, Weidner said.
Midwest Padding employs about 70 people in Norfolk. Owner Al Collison said those workers would be given paid time off.
''We had a thriving business yesterday and a pile of ashes today,'' Collison said.
Collison said he doesn't not yet know if Midwest Padding, which has plants in other locations around the country, will rebuild its Norfolk operation.
''This place is a total loss,'' Collison said.
Weidner said fire crews were letting the fire burn itself out because using water on the padding materials only causes the flames to smolder.
''It's impossible to put out,'' Weidner said.