There was no report of injuries or deaths as of press time on Wednesday morning.
Police said they were alerted to the fire at the factory located in Moo 10 of Nam Cham subdistrict around 10pm. Ten fire engines were immediately dispatched to the scene but the flames had already spread to two nearby houses by the time they arrived.
Firefighters spent more than hour trying to douse the flames and prevent it from spreading further but were hampered in their efforts by the wood inside the factory which was fuelling the fire.
Workers who spent nights at the factory reportedly told police that they heard an explosion before seeing the fire spread from the furniture storage room. By the time they escaped, the building was engulfed in flames, they added.
Investigators are collecting evidence to determine the cause of the fire.