P Polayya (39) was killed in the blast which occurred in the yard, situated in Bhimili mandal, at around 10 am, said Deputy joint inspector of factories K Prasad.
The incident took place while the duo was handling the waste material. There was a blast in which Polayya sustained injuries and was declared dead on his arrival to a hospital, added Prasad.
Prasad said as per initial injury remains of chemicals in the tins or plastic covers of the dumping yard might have exploded.
Meanwhile, a police official said that a case of accidental death has been registered.