MFB and CFA firefighters were called to the Australian Paper Recovery bailing and packing shed in Oban Court shortly before 8pm on Thursday.
The 80mx60m warehouse was fully involved when crews arrived.
The fire was brought under control by around 9pm but crews are expected to be on scene all day dampening down.
Point Cook pumper and tanker and Caroline Springs pumper provided support for the MFB-controlled incident.
Update 8am (Fri 3 Aug): Smoke is affecting Doherty's Road and people are advised to avoid the area. Click here for current warnings & advice.
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