A fire service spokeswoman said a fire of plastics and chemicals at Planet Recycle in Hamilton has been contained.
The fire had caused a thick plume of smoke to shoot up through the city as the rubbish burned just off Latham Ct, in the suburb of Frankton.
Residents are being urged to keep windows closed because the smoke could be toxic.
The colour of the smoke was caused by the amount of plastic that was being burnt, including televisions and rubbish.
Traffic on Kahikatea Rd was backed up due to people looking at the fire.
Environment Waikato had been sent to the scene to assess any chemical damage.
Newshub. / NZN