Firefighters are tackling a blaze at the Universal Recycling centre near Rotherham.
Fire crews were called to the incident at 4:27pm today after reports that a major fire had broken out.
Plumes of black smoke can be seen for miles around following the incident on Wharf Road, Kilnhurst, with reports of explosions as the fire spreads.
Eight fire engines are at the scene, with several officers in attendance and a high volume water pump on the way.
One witness said that it looked like the recycling centre was on fire, which is near to a number of homes.
Daniel Roberts lives in the area, he said: "There are toxic fumes everywhere, the firefighters have told everyone to go back into their houses."
South Yorkshire Fire and Rescue are urging people to avoid the area if possible.
They are also advising residents to keep all windows and doors shut due to smoke in the area.
Wharf Road is currently cordoned off whilst officers deal with the incident.
A spokesperson for South Yorkshire Police said: "Officers are on scene and would like to thank the local community for their understanding and patience while work is underway to deal with the incident and ensure everyone's safety."
Last year firefighters tackled another major blaze at the recycling plant, where residents had to be evacuated from their homes.
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More to follow.