Melrose to open $100m claims scheme for US chemical scare, shares spark.
Melrose Industries on Tuesday said it was opening a $100m claims programme after a toxic chemical scare at a US plant in May led to a mass evacuation of residents and businesses.
Source: Sharecast
In its latest update, Melrose said the Orange County District Attorney has now closed its criminal investigation with no charges, while the company targeted September 28 for a full manufacturing restart after permanently decommissioning the tank and investing in safety upgrades.
Shares in the firm jumped 9% on the news.
The incident occurred at Melrose's Garden Grove facility in California run by its GKN Aerospace unit, after a chemical tank containing thousands of gallons of methyl methacrylate overheated and forced authorities to clear a wide area for several days.
Melrpose said the scheme, which will open in the coming weeks and run into 2027, will reimburse hotel stays, meals, transport, lost wages and loss of use, following an incident that saw emergency crews dousing the tank for days amid fears of a rupture or vapour explosion.
Civil matters, including emergency‑services cost recovery and potential enforcement penalties, remain separate, and the group’s insurance position is still under review.
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