Update - 8.30pm
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Four NSW Fire and Rescue and two Rural Fire Service units are on the scene battling the fire in hay sheds near the Teys abattoir in Bomen.
Heavy machinery is being used to pull apart the hay from within the shed and water is being applied to extinguish the flames.
There have been no reported injuries.
NSW Fire and Rescue zone commander Stewart Alexander said the cause of the fire is yet to be determined.
"The hay is tightly packed in there and the only way to extinguish the fire is to pull it apart," Superintendent Alexander said.
"We'll be out there for some time ... the cooler temperatures overnight will help, but I can't tell you how long.
"We're unsure of what may have cause the fire, but good work by firefighters who have been able to stop the spread to other hazards that were nearby."
The RFS crews are helping Fire and Rescue with water supply.
It is unknown how much hay has been destroyed, however Superintendent Alexander said it is an unfortunate situation.
"This is important feed for animals that has been lost and damaged but we're doing everything we can to get it back to normal operation," he said.
"We're still maintaining coverage, if any other incidents occur in the Wagga area.
"Fortunately, nothing else has happened, but someone will be out there and making sure it's completely out."
Superintendent Alexander said there has been a combined response from the two fire agencies and also machinery operators and staff.
"Great work by all firefighters and machinery operators and staff are doing great stuff to make sure we get it out and everyone stays safe," he said.
Thursday at 4pm
Workers have evacuated as a large emergency services contingent fights a fire near the Teys abattoir at Bomen.
Tom Maguire, chief value chain officer at Teys, said the fire broke out at about 1.30pm in a hay shed.
"We activated the business continuity plan and wound down the factory operations and sent everyone home," he said.
"We are continuously monitoring the situation, but there is no damage to infrastructure and there will be no disruptions to supply.
"There were two gas cylinders that were located in one of the sheds that exploded, but at no stage was anyone in danger."
Mr Maguire said productions should resume as normal from Friday.
He added that the company was extremely grateful to the emergency services for their quick response and their efficiency at containing the incident.
Superintendent Stewart Alexander firefighters are pulling the haystacks apart and applying large volume water streams to extinguish it.
"No reports of injuries and the status of the fire is under control," he said.
"No cause has been determined yet."
Thursday at 3pm
Workers have evacuated as a large emergency services contingent fights a fire near the Teys abattoir at Bomen.
A HAZMAT truck as well as four crews are at the scene, fighting a blaze that has broken out in hay sheds.
Earlier a Fire and Rescue NSW spokesperson said that reportedly a number of nitrogen cylinders exploded.
But since then, Superintendent Stewart Alexander said that the report remains unconfirmed and firefighters are protecting drums of chemicals in the area.
He added that approximately 20 workers reportedly self-evacuated from the area after the fire broke out, and a number of people from a building close by have also been moved on.
"We have four trucks on the scene," Superintendent Alexander said.
"The Rural Fire Service are also assisting on the scene.
"A grass fire that started has been extinguished and the situation is being controlled."
Police are also in the area and controlling the flow of traffic around the site.