A fire broke out in the factory of Bangladesh Steel Re-rolling Mill Limited (BSRM) in the port city's Oxygen area Monday morning.
No casualties or major losses were reported.
Chittagong Fire Service and Civil Defence Deputy Assistant Director Mohammad Jasim Uddin told the Dhaka Tribune that the fire had broken out when a steel-melting oven had broken down around 10am.
Three fire fighting units from Agrabad and Bayezid fire stations rushed to the scene and succeeded in controlling the flames after an hour of effort.
Factory officials said the raw materials burnt in the fire could be used for production.
The workers were in a state of panic because of the fire when they returned to their workstations two hours after the incident, according to a factory official seeking anonymity.