The Charlotte Observer reported on its Web page that officials said three people were injured. Officials ordered a voluntary evacuation after the incident at Stat Inc., said Sawmills Town Manager Bob Frye.
Residents and businesses around the facility for a third of a mile were asked to evacuate and a shelter was set up at Hudson Middle School.
``This morning, a fire broke out in one of their storage facilities and there was an explosion,'' Frye said, adding the area wasn't densely populated but he didn't know how many people were affected.
Frye said two first-responder units were on standby.
Robin Bean, the secretary at the school, said there weren't many people at the shelter.
``There's no panic at all,'' Bean said. ``It's pretty quiet.''