Melrose Industries’ shares surged 8.51% on Tuesday after the Orange County District Attorney’s Office closed its criminal investigation into an incident at GKN Aerospace’s Garden Grove, California facility without filing charges.
The London-listed engineering group said the probe’s closure removes a key legal uncertainty tied to the 2026 incident, which triggered a mass evacuation and subsequent operational disruptions. GKN fully cooperated with the investigation, according to Melrose’s statement. The resolution of the criminal case is described as a significant step toward concluding the OCDAO’s parallel civil proceedings.
GKN Aerospace, which operates the facility employing roughly 500 people, has decommissioned the tank involved in the incident and implemented substantial safety upgrades. The company targets late September—specifically September 28—to resume full manufacturing operations at the site. Customer deliveries are expected to restart in the fourth quarter, easing concerns over supply chain disruptions.
Separately, Melrose announced a $100 million claims programme to reimburse individuals and businesses for evacuation-related costs, including lost wages and loss of use. The programme excludes costs borne by public safety agencies and other liabilities still under resolution. Melrose reiterated that its insurance position remains unchanged from its half-year results.
The incident had previously weighed on Melrose’s shares amid uncertainty over potential legal and operational fallout. The probe’s closure and the facility’s impending restart signal progress toward normalizing operations at the aerospace components manufacturer.
