Melrose has unveiled a compensation programme worth up to $100 million (£73.4 million) following a chemical incident at its GKN Aerospace facility in Garden Grove, California.
The FTSE 100 aerospace group said the claims programme is expected to open within weeks and remain available into 2027, covering damages linked to a May evacuation order.
Eligible claimants include local residents and businesses seeking compensation for hotel stays, meals, transport costs, and loss of wages resulting from the evacuation.
The incident was triggered by an overheating chemical tank at the GKN Aerospace Garden Grove facility at the end of May, which prompted an emergency services response and the evacuation of parts of the surrounding area.
In a notable development for the company, the Orange County District Attorney’s Office has closed its criminal investigation and will not bring any criminal charges against Melrose or GKN.
Melrose said: “GKN has co-operated 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.”
The company confirmed it plans to restart full manufacturing operations at the Californian site on September 28, marking a return to normal capacity after months of disruption.
Melrose, which owns GKN Aerospace, manufactures engine parts for jet fighters, military helicopters, and civil aircraft, while also providing a broad range of flight technology.
The company had previously warned it expects additional costs of between £25 million and £30 million in the second half of 2026 due to the incident, alongside a financial hit from reduced capacity.
The group also paused its £175 million share buyback programme earlier this year while it assessed the full financial impact of the California events.
Despite the disruption, Melrose posted an 18% jump in half-year adjusted earnings and a 10% rise in sales last month, though the incident reduced interim revenues by £16 million and adjusted operating profits by £9 million.
Melrose added: “GKN has permanently decommissioned the tank involved in the incident and has made substantial investments in safety enhancements at the facility.”
The company noted that claims by emergency services agencies and potential civil enforcement penalties will be resolved separately and fall outside the scope of today’s announced programme.
Its insurance position in relation to the incident remains under review, the company added, leaving some financial uncertainty still to be resolved.