Lucas Perelini said it looked like the whole building had gone up in flames.
"I was standing about 400 metres away, but could hear it hissing and loud bangs like small explosions. It's pretty hectic."
The wind was blowing the thick black smoke away from where he was standing, but it "didn't look good".
Ravensdown said all staff were accounted for and no injuries had been reported.
"Ravensdown confirms there is a fire at its intake on the Hornby premises. Emergency services are in attendance and we are currently working with them."
CEO Greg Campbell said they didn't know the cause of the fire, and would be investigating.
A Christchurch Transport Operations Centre spokeswoman said motorists should expect severe delays.
"If you are travelling east or west to or from SH1 please use the Christchurch Southern Motorway as an alternate route.
"If you are travelling from Sockburn Roundabout use Racecourse Rd and Buchanans Rd."
Main South Road is now closed from Carmen Rd to Springs Rd.