Residents are being advised to keep their doors and windows closed as firefighters extinguish the fire on the Suez site in Mitcham.
There is still a significant amount of smoke emitting from the waste storage centre in Benedict Wharf, Hallowfield Way.
Firefighters were called to the fire around 8.15pm last night. The number of fire engines in attendance has now been reduced from 12 to six, but firefighters are expected to remain at the scene into this evening.
Motorists are advised to avoid the area during the evening rush hour, due to significant travel disruption, which is expected to last for the rest of the day.
Benedict School, Melrose School and Cricket Green School are all closed today.
The traffic disruption has resulted in some delays in completing all the recycling and rubbish collections for today – these are in the Hillside, Wimbledon and Raynes Park areas. However, all scheduled collections are are due to be completed by 6pm.