Melrose Industries PLC (LSE:MRO, OTC:MLSPF) share prices surged 11% after the company outlined a $100 million claims programme for residents and businesses affected by the May evacuation linked to an incident at its GKN Aerospace’s Garden Grove facility in California.
The aerospace big cap traded as high as 512.8p intraday, up 11% from its previous close of 462p.
The company has confirmed that no criminal charges will be brought and that manufacturing is targeted to restart next month.
The programme is expected to open in the coming weeks and remain available into 2027, covering eligible costs including hotel stays, meals, transport, lost wages and loss of use.
The Orange County District Attorney’s Office has closed its criminal investigation into the incident and determined that no charges will be filed, removing one area of uncertainty as GKN works towards resolving the remaining civil matters.
Claims from emergency services agencies and any potential civil enforcement penalties will be handled separately from the $100 million programme.
GKN has permanently decommissioned the tank involved in the incident and invested in safety improvements at the site.
Full manufacturing operations are targeted to resume on 28 September, followed by a phased return to full capacity and customer deliveries during the fourth quarter.
Garden Grove, operated by GKN Aerospace Transparency Systems, employs around 500 people and produces advanced military and commercial aircraft transparencies. The facility generated £136 million of sales in 2025.
Melrose said its insurance position remains under review.
