Melrose Industries Plc (LON:MRO) has announced three important developments relating to the incident at GKN Aerospace Garden Grove (GKN):
| – | a claims programme will be launched to provide up to $100 million for eligible residents and businesses seeking to resolve claims for damages incurred in connection with the May evacuation order; |
| – | the Orange County District Attorney’s Office (“OCDAO”) has closed its criminal investigation and determined that it will not bring any criminal charges; and |
| – | GKN is targeting 28 September 2026 to resume full manufacturing operations. |
The claims programme, which is expected to become effective in the coming weeks and remain open into 2027, will reimburse those eligible for costs associated with the evacuation, including hotel stays, meals, transportation, loss of wages, and loss of use.
GKN has cooperated fully with all investigations, including that of the OCDAO, and today’s developments represent a significant step towards full resolution of the OCDAO’s civil investigation. Claims by emergency services agencies for costs incurred in responding to the incident and potential civil enforcement penalties will be resolved separately and are not included in the claims programme announced today.
Since the incident occurred, GKN has worked closely with regulators, local authorities and other relevant stakeholders to carefully review the incident and prepare to safely return to full operations. GKN has permanently decommissioned the tank involved in the incident and has made substantial investments in safety enhancements at the facility.
GKN is targeting 28 September 2026 to resume full manufacturing operations with a phased return to full capacity and customer deliveries during the fourth quarter. GKN will continue to work closely with relevant agencies and officials to achieve this.
As announced at our half year results, our associated insurance position remains under review.
Further updates will be provided as appropriate.
