Several homes were evacuated after it was feared a fire at a factory may spread to drums packed with solvents and chemicals.
Fire officers said a major incident was narrowly avoided, and the fire could have been extremely dangerous.
A member of staff at the business in Barton Stacey, Hampshire, which makes essential oils, was hospitalised with serious burns to his chest and head.
The fire is now out and residents are being allowed back to their homes.
Four houses close to Lionel Hitchen Essential Oils, in Gravel Lane, were evacuated, with the residents housed in the village hall.
A fire service spokesman said: "It could have been a lot worse, this was a possible major incident nipped in the bud.
"If the fire had spread to the solvents, we would have been looking at toxic smoke clouds, and many more than four houses being evacuated."