The explosion could be heard several kilometers away, with local residents describing it as "like an earthquake." A column of smoke was visible from across Granada.
According to preliminary reports, the explosion occurred in a waste incineration area.
Five people have been reported injured. They received medical treatment at the scene, and none required hospitalization.
According to Spanish newspaper ABC, the El Fargue plant supplies Ukraine with products including ammunition of various calibers and missile components.
The newspaper noted that this was the second incident involving the plant in two weeks.
On Oct. 13, a company truck carrying mortar shells overturned on a road, prompting authorities to close the road and evacuate residents from several nearby homes.
On Aug. 13, a fire broke out at the KNDS Ammo Italy ammunition plant in Colleferro, near Rome, followed by a powerful explosion. There were 24 employees at the facility at the time, but no injuries were reported.