Adds shares, details on the incident from paragraph 4

May 26 (Reuters) - Shares in GKN Aerospace owner Melrose Industries MRON.L fell as much as 7% on Tuesday after an overheating chemical tank at GKN's Garden Grove facility in California triggered an emergency response and evacuation orders over the weekend.

Melrose said GKN Aerospace is working with customers on operational recovery and supply plans as response operations continue.

The U.S. site, which makes aircraft windshields and specialty aerospace plastics, among other things, generated £136 million ($183.29 million) in sales in fiscal 2025 and has 500 employees.

Shares in Melrose were down about 4.6% by 0720 GMT, making it the biggest loser on the benchmark London FTSE 100 .FTSE and the pan-European STOXX 600 indices .STOXX.

Officials had warned that the tank could rupture, spilling up to 7,000 gallons (26,500 litres) of toxic material, or explode, thereby endangering other tanks on the GKN site. On Monday, the firefighters said the tank was no longer at risk of exploding after a crack relieved pressure.

On Thursday, a thermal issue was identified in a tank holding methyl methacrylate, a chemical used in plastics and manufacturing, prompting an emergency response and mandatory evacuation orders for parts of the surrounding community.

Melrose did not disclose any financial impact from the incident or whether costs would be covered by insurance.

($1 = 0.7420 pounds)