Melrose says no leaks or injuries from chemical incident in California

(Alliance News) - Melrose Industries PLC on Tuesday said the evacuation zone around its facility in California had been downsized, as specialists worked to resolve "a thermal issue" at the site.

Shares in the Birmingham, England-based aerospace and defence business fell 5.2% to 483.00 pence on Tuesday morning in London.

Melrose disclosed that an issue was identified on Thursday in a tank storing methyl methacrylate at GKN Aerospace's Garden Grove site.

According to the Environmental Protection Agency, the flammable chemical used in plastic production is an irritant which can cause respiratory and neurological reactions in humans. The incident prompted local fire authorities to issue mandatory evacuation orders for the surrounding area.

Around 50,000 people were evacuated, AFP reported.

Authorities noted on Sunday: "There is currently no active leak, and continuous live atmospheric monitoring confirms there are no chemicals leaking."

On Monday, pressure in the tank was declining, and the temperature had fallen to around 34 degrees centigrade from 38 degrees, AFP reported.

The evacuation zone has since been reduced, following consultation with "technical specialists, the emergency services and the relevant authorities".

Melrose added that on Monday evening, authorities confirmed no injuries, leaks or contamination had occurred as a result of the incident.

"GKN is working closely with customers on operational recovery and supply plans," the company said.

Garden Grove Police Chief Amir El-Farra acknowledged that the situation was frustrating for the remaining 16,000 people who are still impacted.

"Please understand that we are doing this for your safety, and we will continue to work diligently," El-Farra said.

By Holly Munks, Alliance News reporter

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