(ABC NEWS) -- The situation at an Arkema chemical plant in Crosby, Texas, outside of Houston, has become "serious," the company said in a statement, and there is a risk that the plant could catch fire or explode.

"At this time, while we do not believe there is any imminent danger, the potential for a chemical reaction leading to a fire and/or explosion within the site confines is real," the company said Tuesday evening.

The site has experienced heavy flooding from Hurricane Harvey, "receiving approximately 40 inches by Monday afternoon," the company said.

Residents within a 1.5-mile radius of the facility have been asked to evacuate, according to the Harris County Fire Marshal's Office.

This story is developing. Please check back for updates.