US blast to cost GKN £30m
An explosion at Redditch-based GKN's Hoeganaes Corporation plant in Tennessee, US, is set to cost the company £30m. The engineer said it would launch a full investigation into the incident after two workers died in the blast.
The explosion occurred in Gallatin, on 27 May.
GKN said that although investigations continue, initial indications suggest a hydrogen gas leak.
Five employees were hurt in the incident, two of whom died of their injuries. A third remains in a "critical condition", GKN said this morning.
Production has now been suspended at the plant, which creates annual revenues of about $250m from sales to sinter metals customers. Limited production may be reinstated next week, said the company.
In total, the additional costs of shipping, purchasing, plant closure and remedial works costs are expected to lead to an exceptional one-off charge of around £30m, said GKN. The figure is prior to any potential recovery from insurance claims.
In a statement, the company said this morning: "GKN has implemented a full plant safety review, supported by two independent organisations, to ensure that it fully understands the cause of the incident and implements appropriate measures to prevent a recurrence."
