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Police were called to Seafield recycling centre in the north of the city on Thursday morning and the plant was sealed off.
Pictures from the scene show a bomb disposal expert inspecting the object and a police car could be seen parked outside the site entrance. Seafield Road has also been cordoned off between Fillyside Road and Craigentinny Avenue North due to the ongoing incident.
Locals also reported seeing a large number of police officers in the area this morning.
A sub-contractor who empties green bins at the recycling centre said they were emptying a black bin bag full of clothes when they noticed it spill out and hit the ground. One of the workers said they saw “sparks coming out of it.” After alerting managers, police were called to the scene.
A Police Scotland spokesperson said: "Officers are currently in attendance at a recycling centre in Seafield, Edinburgh, following a report of a unidentified item being found.
"A cordon is in place while specialist teams attend to assess the item."
Edinburgh City Council’s official Twitter account also confirmed the recycling centre was closed.
The Edinburgh Travel News Twitter account, run by members of the council’s roads team, said Seafield Road had been closed in both directions between Fillyside Road and Craigentinny Avenue North due to the ongoing incident. As a result, traffic was heavier on Seafield Road East, Restalrig Road, Craigentinny Avenue and Lochend Road.
An update has since been shared by Edinburgh Travel News to say the road reopened around 2.40pm.
The local authority has now also confirmed that the recycling centre will open as normal on Friday for booked appointments.
Earlier today, council leader Adam McVey said: “Seafield HWRC (household waste recycling centre) is currently closed due to an ongoing incident and the need to ensure the safety of site users and our own staff.
"We’re working with Police Scotland and will provide updates on our social media channels as soon as possible. Customers who had appointments booked are being contacted directly to allow them to arrange new appointments.”