GKN Aerospace Owner Melrose Drops 7% After California Plant Incident

GKN Aerospace Owner Melrose Industries Shares Fall

Shares in GKN Aerospace owner Melrose Industries (LSE:MRO) 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.

Incident Details

Melrose said GKN Aerospace is working with customers on operational recovery and supply plans as response operations continue. The U.S. site, which makes aircraft windshields and specialty aerospace plastics, generated £136 million ($183.29 million) in sales in fiscal 2025 and has 500 employees.

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, firefighters said the tank was no longer at risk of exploding after a crack relieved pressure.

Financial Impact Unknown

Melrose did not disclose any financial impact from the incident or whether costs would be covered by insurance. Shares were down about 4.6% by 0720 GMT, making it the biggest loser on the London FTSE 100 and the pan-European STOXX 600 indices.