Twenty firefighters are dealing with a large blaze near Newry city centre on Saturday afternoon.
They were called to a building in the Greenbank industrial estate at 11:47 BST and the operation to extinguish the blaze is ongoing.
Video footage shows large black plumes of smoke billowing across the area.
Four fire appliances are at the scene, as well as a water tanker and an aerial ladder hose.
It is believed the fire may have started at or near a kart racing centre.
The blaze is close to a number of other businesses and Páirc Esler GAA stadium, according to Karen McKevitt, a former SDLP assembly member.
Speaking to BBC News NI from the scene, she said it looked like the flames were “spreading quite quickly”.
“It’s bellowing out quite a lot of black, thick smoke and I have been speaking to a few local businesses down in Greenbank who have evacuated their premises as a precautionary [measure] with their windows closed,” she said.
Ms McKevitt added her thoughts were with the affected businesses based in the industrial estate and the emergency services who were trying to protect them.
“It is a major fire in Newry and I just hope everybody is safe.”
BBC reporter Darran Marshall said loud popping noises can be heard in the city as the fire spreads through the complex.
The smoke, he added, can be seen from over 10 miles away.