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Aerospace company Melrose Industries has paused its share buybacks as it waits for potential legal and regulatory action over a leaking chemical tank in California.
The company’s GKN Aerospace business said the tank at its Garden Grove facility was leaking methyl methacrylate, a flammable chemical used in the acrylic for windows for the F-35 fighter jet and passenger cabin windows on commercial aircraft, because it was overheating. The local area had to be evacuated in case the tank exploded (which it did not).
We are managing the situation at our Garden Grove transparencies site following the incident in May. Partial production has since resumed, and we will continue to work closely with customers, regulators and other authorities to safely restore the site to full production in the second half.
Market activity and house prices have remained soft in recent months, in part reflecting the uncertain economic backdrop. Geopolitical tensions remain high, with the conflict between Iran and the US again exerting upward pressure on energy prices and market interest rates in recent weeks.
Financial market expectations for the future path of Bank Rate have been volatile, reflecting shifting views about the inflationary implications of events at home and abroad.
