Firefighters and police are on the scene, as a plume of black smoke is blotting out the sky at Industrial Way.
There are no reported injuries, according to The District of Squamish.
Onlookers are reporting that they heard an explosion, with at least one person saying it rattled the floors and windows of nearby buildings.
The District later confirmed that a propane tank explosion occurred at 1111 Industrial Way, which is the site of ASM Squamish Scrap Metals.
Spokesperson Rachel Boguski told The Chief at 5:11 p.m. the fire was contained, but residents are advised to stay clear of the area.
No air quality advisory has been issued for the area, Boguski said.
A pungent smell of rubber has filled the air.
The area has been cordoned off with caution tape.
Industrial Way from Production to Mid Way has been closed down, with traffic being rerouted.
Dozens of people are milling around the area, and the smoke is causing people to cover their faces with cloths.
As of 4:44 p.m., it appears as if crews are getting the fire under control.
-With files from Steven Chua
The story will be updated should more information become available.
