Melrose says Garden Grove plant on track to resume operations by fourth quarter

By Reuters News

Oct 13 (Reuters) - GKN Aerospace owner Melrose Industries said on Tuesday authorities in California had begun the process of resolving claims linked to an incident at its Garden Grove facility, as the company continued preparations to resume full operations in the fourth quarter.

  • GKN Aerospace halted production in late May at the suburban Los Angeles plant after an overheating chemical tank sparked fears of an explosion and forced the evacuation of about 50,000 nearby residents.

  • The Orange County District Attorney's Office has filed court documents, including a proposed final judgment and operational safety plan, to conclude its civil investigation.

  • Melrose agreed in August to pay up to $100 million to settle damage claims, alongside $25 million related to civil enforcement penalties and claims from emergency services and local authorities.

  • The company said mediation discussions over pending civil class-action lawsuits are continuing, while the group's insurance coverage remained under review.

  • The company's shares were up 4.4% to 469.4 pence as of 0852 GMT.

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