ELWOOD — At least one-third of the Plastech Decorating Systems plant in Elwood was destroyed in an early morning fire Monday.

The plant, located at 11700 N. Indiana 37 and scheduled to close its doors due to bankruptcy on July 25, erupted in flames at 6:55 a.m.

The fire originated in the painting rooms of the plant and was contained to the eight booths where exterior plastic auto parts are spray painted by robotic machines.

According to plant manager Melinda Ford, about 30 employees were working in the paint area when the fire started, while another 50 to 60 workers occupied other sections of the plant. Ford said all 80 or so workers on staff were evacuated from the building safely.

Black smoke billowed from the plant in the early morning hours Monday, and could be seen up to five miles east of the fire, according to Pipe Creek Battalion Chief Myron Watson.

According to Todd Harmeson of the Madison County Emergency Management Agency, hazardous materials teams tested the air quality and determined it to be safe.

A team from the Indiana Department of Emergency Management arrived shortly after 10 a.m. to test the water run-off from the thousands of gallons of water poured on the fire. The water was determined to be safe and free from chemical contamination.

The fire was extinguished at 11 a.m., according to Harmeson, who also said that both Indiana 37 and County Road 750 West reopened after being closed off during the fire.

Plastech, which once boasted a work force of 286, announced May 15 that the plant was closing and has made weekly layoffs since the announcement.

The latest layoff wave occurred July 11 and another was scheduled for this Friday.

The final layoff is scheduled for July 25.

According to Jeff Schilling, a maintenance employee, the plant was finishing up one final contract with Ford before closing its doors.

Plastech employee Larry Jones, who lives just blocks from the plant, said he was scheduled to work at 8 a.m. and was going out for breakfast around 7:30 a.m. when he noticed the fire.

“I saw flames shooting out of the roof,” Jones said. “Someone said the fire started in three places. It’s a shame because now they’re going to have to pay to fix up the building.”

Jones wondered aloud whether he will ever work at the plant again.