GKN Aerospace owner Melrose drops 7% after California plant incident
Incident Overview and Market Impact
May 26 (Reuters) - Shares in GKN Aerospace owner Melrose Industries fell as much as 7% on Tuesday after an overheating chemical tank at GKN's Garden Grove facility in California triggered an emergency response and evacuation orders over the weekend.
Operational Response and Recovery
Melrose said GKN Aerospace is working with customers on operational recovery and supply plans as response operations continue.
Facility Details
The U.S. site, which makes aircraft windshields and specialty aerospace plastics, among other things, generated £136 million ($183.29 million) in sales in fiscal 2025 and has 500 employees.
Stock Market Reaction
Shares in Melrose were down about 4.6% by 0720 GMT, making it the biggest loser on the benchmark London FTSE 100 and the pan-European STOXX 600 indices.
Emergency Response Details
Potential Risks
Officials had warned that the tank could rupture, spilling up to 7,000 gallons (26,500 litres) of toxic material, or explode, thereby endangering other tanks on the GKN site. On Monday, the firefighters said the tank was no longer at risk of exploding after a crack relieved pressure.
Evacuation and Chemical Details
Methyl Methacrylate Incident
On Thursday, a thermal issue was identified in a tank holding methyl methacrylate, a chemical used in plastics and manufacturing, prompting an emergency response and mandatory evacuation orders for parts of the surrounding community.
Financial Impact and Disclosure
Melrose did not disclose any financial impact from the incident or whether costs would be covered by insurance.
Additional Information
($1 = 0.7420 pounds)
(Reporting by Nithyashree R B and Simone Lobo in Bengaluru; Editing by Mrigank Dhaniwala and Rashmi Aich)
