Firefighters have managed to contain a blaze at a tyre recycling facility in Welshpool, but morning peak traffic remains affected.

The fire was reported about 3.15am on Fargo Way.

Upon arrival firefighters found the business engulfed in flames with thick, black smoke coming from the roof of the building.

There are concerns the smoke will effect the flight path for the airport which is just eight kilometers away.

About 45 firefighters are on the scene battling the blaze, which is now contained and controlled.

Fargo Way and Felspar Street remain closed, and motorists in the area are being advised to take care.

Traffic is backed up along Orrong Road as a result of the smoke.

It is not yet clear what caused the explosion.