Melrose shares climb on Garden Grove plant reopening timeline

Melrose shares climb on Garden Grove plant reopening timeline A drone picture shows a GKN Aerospace building, the site of a chemical incident involving a failing tank of flammable liquid called methyl methacrylate, used in the aerospace industry, which has forced an evacuation in the surrounding area in Garden Grove, California, U. S. May, 22, 2026.

REUTERS/ Caroline Brehman · Reuters Reuters Tue, August 25, 2026 at 9:56 AM GMT+2 1 min read MRO. L Aug 25 (Reuters) - Shares of Melrose Industries rose 8% on Tuesday after the GKN ‌Aerospace owner said it was targeting September ‌28 to resume full production at its Garden Grove ​facility and pay up to $100 million to settle damage claims from a May incident involving an overheating chemical tank. GKN Aerospace halted production in late ‌May at a ⁠suburban Los Angeles plant after an overheating tank raised fears of an explosion ⁠and prompted the evacuation of 50,000 nearby residents for several days.

A district attorney in California ​said late ​on Monday it would ​close its criminal ‌investigation into the incident without bringing charges. "There is still some uncertainty around potential expectation costs, but an up to $100m program for local residents gives a sense of end costs that while significant, ‌will be manageable," RBC ​Capital analyst Mark Fielding said ​in a note, ​adding that the reopening timeline was ‌a positive clarification. Melrose said ​In its half-year ​results in July that the facility was operating at about 50% capacity, reducing sales, ​profit and ‌cash flow by about 6 million pounds ​per month.