Firefighters were working throughout most of the day to keep the blaze under control after several members of the public called the emergency services to report smoke billowing out of the facility.
Nearby buildings had to be evacuated, although some people were warned to stay indoors in order to stay away from the thick plumes of smoke.
The fire, which started just after 9 am, is believed to have been caused by burning tyres at the recycling facility.
The blaze could be seen from the other Channel Islands with residents in Sark and Alderney also reporting seeing the smoke.
A Guernsey police spokesperson said: ‘Colleagues at Guernsey Fire Services have got the blaze under control.
‘Our advice to businesses in the area is to stay indoors for the time being until the smoke clears a bit more.’
Officers from Guernsey’s Environmental Health Department also issued advice to anyone affected by the smoke and warned that ‘anyone who is affected by the plume of smoke should stay in their property and close their doors and windows’ as a precautionary measure.