Emergency workers and police were today investigating a chemical alert at Carter Holt Harvey's Kinleith paper mill in Tokoroa.
Police say at least one road has been closed but initial fears that a man walking his dog in the area was at risk have been allayed.
"It is right in the middleof 60,000 hectares of pine forest and we have got no immediate concerns for anyone at this stage," Detective Sergeant Greg Standen from Tokoroa police said.
He said State Highway 32 between the Old Taupo Road and the Whakamaru Dam had been closed.
Mr Standen said road blocks had been put in place and about 50 police and volunteer firefighters were on standby.
Initial reports from police said a gas cloud from the mill was heading west but Transit New Zealand said it was a chemical spill.
Police later said the emergency was caused by a major chlorine leak at the mill.
"A resulting gas cloud dissipated into the air, being moved firstly by a westerly breeze towards the area of State Highway 32 between Tokoroa and Mangakino.
"The evolving size of the gas plume caused immediate concern and emergency services were deployed from the Tokoroa and Kinleith fire brigades, Tokoroa police and district council staff with about 30 personnel involved," Mr Standen said.
He said traffic was being diverted away from the area of contamination and although there was no immediate danger to the public, they were advised not to enter the contaminated area.
A helicopter was called to disperse the plume into the atmosphere, Mr Standen said.