The blaze erupted at scrapyard at Angus Braidwood and Son Ltd on Castle Drive, Bankside Industrial Estate around 1:45pm – and the smoke could be seen for miles around.
Eye-witnesses spoke of hearing ‘popping noises.’
The Scottish Fire and Rescue Service dispatched six fire engines to the scene, together with a high reach appliance.A command support unit was also deployed.
Police Scotland also attended the blaze.
Eyewitnesses included Russell Dunn, who lives on Kersehill Crescent, at the other side of the canal.
He captured the mass of smoke from his window at around 2pm on Saturday.
Mr Dunn then walked over to the flats on the canal at Canavan Park to get a better view.
He said: “It looks like it's in the industrial estate. I saw it from the window and walked round to the canal.
"All I could see was huge plumes of black smoke.”He added: “I hope everyone is safe.”
Mr Dunn also said he heard some “popping noises” coming from the industrial site and said he decided to stay away from the area.
A Scottish Fire and Rescue Service spokesperson said: “We have six appliances on scene with a water carrier, high reach appliance and command support unit."
The spokesman said crews worked with two main jets and one hose reel jet.
Police officers also closed nearby roads to allow the emergency crews to bring the blaze under control.