Melrose Industries has announced a $100 million (£73.4m) compensation programme for residents and businesses affected by a chemical leak at its GKN Aerospace facility in Garden Grove, California. The fund, expected to open in the coming weeks, will cover expenses such as hotel stays, meals, transport, and lost wages incurred during the May evacuation.
The company confirmed that the Orange County District Attorney’s Office (OCDAO) has closed its criminal investigation into the incident without filing charges. Melrose stated it plans to resume full manufacturing operations at the site on September 28, following decommissioning of the compromised chemical tank.
The leak occurred on May 21, when a pressurized tank containing 7,000 gallons of methyl methacrylate—a toxic chemical used in plastics manufacturing—overheated due to a cooling system failure. Authorities warned of a potential explosion or major spill, prompting the evacuation of 13,000 to 17,000 households (over 50,000 people) across six cities for five days.
Civil settlement negotiations underway
The compensation programme is part of ongoing civil negotiations between GKN Aerospace and the OCDAO. Prosecutors noted that the broader settlement may also include financial penalties, a safety plan for continued operations, and reimbursement for first responders and government agencies involved in the response.
Federal investigation remains active
While local prosecutors have concluded their review, a federal investigation into potential violations of hazardous substance release prevention requirements is ongoing. On June 10, federal authorities executed a search warrant at the GKN facility, seeking evidence of possible regulatory breaches.
Company response and long-term plans
Melrose, a FTSE 100 firm that supplies engine parts for military aircraft, stated the affected tank has been decommissioned. The company emphasized its commitment to safety and cooperation with authorities throughout the investigation.
Orange County has separately demanded $4 million from GKN Aerospace to cover emergency response costs, according to reports. The district attorney’s office described the community’s expectation for safe and lawful business operations as an absolute priority.
The compensation fund is expected to remain open into 2027, allowing claimants to seek reimbursement for documented expenses related to the evacuation.