Melrose agrees $100m compensation pot over chemical scare

A UK-owned aerospace firm has agreed a compensation programme of up to $100m (£73.4m) for 50,000 California residents forced to evacuate their homes in response to a chemical incident.

GKN Aerospace halted ⁠production at a factory outside Los Angeles in late May after a tank ​overheated.

The evacuation order was given when firefighters were unable to control the valves on the industrial unit, which held between 6,000 and 7,000 gallons of methyl methacrylate - a hazardous and highly flammable chemical used to make plastic parts.

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Nearby residents were kept away from their homes for several days.

A district attorney for Orange County confirmed overnight that no criminal charges were to be brought against the company in response to the incident.

But Melrose Industries, which owns GKN, later confirmed the compensation pot.

It said in a statement to the City that the $100m figure did not include cost claims by emergency services agencies.

"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", it explained.

The Garden Grove plant, which produces windows for planes including the major manufacturers Boeing and Airbus, is now expected to reopen in late September with the blessing of safety officials following a series of inspections.

It is conditional on GKN Aerospace operating the factory under a court-approved safety plan.

"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", Melrose added.

"GKN has permanently decommissioned the tank involved in the incident and has made substantial investments in safety enhancements at the facility."

Melrose shares - down 19% in the year to date ahead of the announcement - recovered 10% at the market open.

(c) Sky News 2026: Melrose agrees $100m compensation pot over chemical scare