Workers were evacuated and a retail park sealed off for more than three hours as firefighters dealt with a blaze at Banbury's Kraft Foods factory yesterday.
Emergency services were called after a portable acetylene cylinder caught fire in a disused part of the factory.
Kraft spokesman Jonathan Horrell said: "The incident was in the area previously used for the manufacture of desserts, which we no longer make in Banbury. Contractors were in there carrying out some alterations.
"Because of the risk of an explosion our emergency procedures were activated and the factory was evacuated. No-one was injured. Police cordoned off the area as a precaution, but there was no explosion."
Road closures led to some traffic delays in Southam Road and Warwick Road after the fire broke out just after 11am. Police set up a 200-yard cordon as a safety measure.
Hundreds of shoppers in the neighbouring Tesco store and the Banbury Cross Retail Park were prevented from leaving and queues built up in the exit roads.
Most cars were empty as drivers returned to the shops waiting for the all-clear - which came at 2.30pm.
Just before the reopening one driver, Banbury builder Dennis Day, said: "It's a nuisance being stuck here, but it's better to be safe than sorry. You never know what might happen, and we have to rely on the judgement of the police and firefighters.
"It might be worth making an emergency exit on to Southam Road for incidents such as this.
"With only one way out of this shopping complex, there's always the danger this could happen again."
At the height of the scare, Ruscote Avenue between Longelandes way and Southam Road was closed, and Beaumont Road was also shut off.
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