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A chemical fire has broken out off Hewletts Rd in Mt Maunganui tonight and emergency services have cordoned off the area.
A fire service northern communications spokesperson said fire fighters were still finding out what the chemical was and how toxic the smoke was.
He said fire fighters were looking at evacuating nearby houses.
A reporter at the scene said traffic had been cordoned out of the area at the intersection of Maunganui Rd and Hewletts Rd, as well as the intersection of Totara St and Hewletts Rd.
Police said evacutations were now in progress in Jean Batten Drive, and asked that the public avoid the area.
The chemical fire is near the intersection of Jean Batten Dr and Hewletts Rd, a fire communications spokesman said.
"There are five crews attending and they are still assessing what the chemical is."
He said the surrounding areas had been evacuated.
The fire was reported at 8pm.
A nearby Z petrol station on Hewletts Rd was closed by police at about 8:30, a staff member said.