<PAGE>
<PAGE>


                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                                    FORM 10-Q

(Mark One)
[X]                QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934
                  FOR THE QUARTERLY PERIOD ENDED JUNE 30, 1998
                                       OR
[ ]             TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                        For the transition period from to
                         Commission File Number 33-64824

                          GENERAL CHEMICAL CORPORATION
             (Exact name of Registrant as specified in its charter)

DELAWARE                                                           22-2689817
(State of other jurisdiction of                                 (I.R.S. Employer
incorporation or organization)                                   Identification
                                                                    Number)

90 EAST HALSEY ROAD
PARSIPPANY, NEW JERSEY                                               07054
(Address of principal executive offices)                           (Zip Code)

       Registrant's telephone number, including area code: (973) 515-0900

     THE REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION I
 (1)(a) AND (b) OF FORM 10-Q AND IS THEREFORE FILING THIS FORM WITH THE REDUCED
                               DISCLOSURE FORMAT.

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.                             YES [X]    NO [ ]





<PAGE>
<PAGE>



                          GENERAL CHEMICAL CORPORATION

                                    FORM 10-Q

                      QUARTERLY PERIOD ENDED JUNE 30, 1998

                                      INDEX
                                      -----

                                                                        PAGE NO.
                                                                        --------
PART I. FINANCIAL INFORMATION:

    Item 1. Financial Statements

       Consolidated Statements of Operations - Three Months
        and Six Months Ended June 30, 1997 and 1998........................    1

       Consolidated Balance Sheets - December 31, 1997 and
        June 30, 1998......................................................    2

       Consolidated Statements of Cash Flows - Six Months
        Ended June 30, 1997 and 1998.......................................    3

       Notes to the Consolidated Financial Statements......................  4-7

    Item 2. Management's Discussion and Analysis of Financial
             Condition and Results of Operations...........................  8-9


PART II. OTHER INFORMATION:

    Item 1. Legal Proceedings..............................................   10

    Item 6. Exhibits and Reports on Form 8-K...............................   11

           SIGNATURES......................................................   12

           EXHIBIT INDEX...................................................   13

           EXHIBIT.........................................................   14





<PAGE>
<PAGE>



                          PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS.

                          GENERAL CHEMICAL CORPORATION
                      CONSOLIDATED STATEMENTS OF OPERATIONS

                                 (IN THOUSANDS)
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                           THREE MONTHS ENDED              SIX MONTHS ENDED
                                                                JUNE 30,                       JUNE 30,
                                                          ---------------------          ---------------------
                                                            1997         1998              1997         1998
                                                            ----         ----              ----         ----
<S>                                                       <C>          <C>               <C>          <C>
Net revenues............................................. $131,107     $149,304          $246,843     $272,845
Cost of sales............................................   87,695      109,563           170,307      203,791
Selling, general and administrative expense..............   10,380       13,058            20,820       23,818
                                                          --------     --------          --------     --------

Operating profit.........................................   33,032       26,683            55,716       45,236
Interest expense.........................................    5,071        6,606            10,304       12,115
Interest income..........................................      326          116               790          354
Foreign currency transaction (gains) losses..............      (32)         615               514          443
Other (income) expense, net..............................      198          256              (311)         257
                                                          --------     --------          --------     --------

Income before income taxes, minority interest
 and extraordinary item..................................   28,121       19,322            45,999       32,775
Minority interest........................................    6,122        3,691            12,342        8,127
                                                          --------     --------          --------     --------

Income before income taxes and extraordinary
 item....................................................   21,999       15,631            33,657       24,648
Income tax provision.....................................    8,582        5,987            13,117        9,802
                                                          --------     --------          --------     --------

Income before extraordinary item.........................   13,417        9,644            20,540       14,846
Extraordinary item - loss on extinguishment
 of debt (net of tax)....................................    --           3,661             --           3,661
                                                          --------     --------          --------     --------

      Net income.........................................   13,417     $  5,983          $ 20,540     $ 11,185
                                                          ========     ========          ========     ========
</TABLE>


        See the accompanying notes to consolidated financial statements.


                                      -1-





<PAGE>
<PAGE>



                          GENERAL CHEMICAL CORPORATION
                           CONSOLIDATED BALANCE SHEETS
                                 (IN THOUSANDS)

                                     ASSETS

<TABLE>
<CAPTION>
                                                                              DECEMBER 31,     JUNE 30,
                                                                                  1997           1998
                                                                                  ----           ----
                                                                                      (UNAUDITED)
<S>                                                                            <C>            <C>
Current Assets:
   Cash and cash equivalents...............................................    $   9,023      $  22,945
   Receivables, net........................................................      106,419        112,819
   Inventories.............................................................       37,584         49,338
   Deferred income taxes...................................................       11,273          8,756
   Other current assets....................................................        1,879          5,072
                                                                               ---------      ---------
     Total current assets..................................................      166,178        198,930
Property, plant and equipment, net.........................................      277,107        305,965
Other assets...............................................................       44,515         87,067
                                                                               ---------      ---------
     Total assets..........................................................    $ 487,800      $ 591,962
                                                                               =========      =========


                                       LIABILITIES AND EQUITY (DEFICIT)

Current Liabilities:
   Accounts payable........................................................    $  52,135      $  54,471
   Accrued liabilities.....................................................       58,835         59,501
   Income taxes payable....................................................        1,850          7,461
   Current portion of long-term debt.......................................       17,392         51,815
                                                                               ---------      ---------
     Total current liabilities.............................................      130,212        173,248
Long-term debt   ..........................................................      240,612        282,980
Other liabilities..........................................................      183,989        184,096
                                                                               ---------      ---------
     Total liabilities.....................................................      554,813        640,324
Minority interest..........................................................       43,301         45,511
                                                                               ---------      ---------
Equity (deficit)
     Common stock, $.01 par value
       authorized:  1,000 shares
       issued and outstanding:  100 shares.................................       --             --
   Capital deficit.........................................................     (176,058)      (169,590)
   Accumulated other comprehensive income..................................       (2,197)        (2,309)
   Retained earnings ......................................................       67,941         78,026
                                                                               ---------      ---------
     Total equity (deficit)................................................     (110,314)       (93,873)
                                                                               ---------      ---------
     Total liabilities and equity (deficit)................................    $ 487,800      $ 591,962
                                                                               =========      =========
</TABLE>


      See the accompanying notes to the consolidated financial statements.


                                      -2-





<PAGE>
<PAGE>



                          GENERAL CHEMICAL CORPORATION
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (IN THOUSANDS)
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                                  SIX MONTHS ENDED
                                                                                      JUNE 30,
                                                                                 ------------------
                                                                                 1997          1998
                                                                                 ----          ----
<S>                                                                            <C>           <C>
Cash flows from operating activities:
   Net income .............................................................    $ 20,540      $  11,185
   Adjustments to reconcile net income to net cash
     provided by operating activities:
        Depreciation and amortization.......................................     14,066         17,666
        Net loss on disposition of long-term assets.........................        374            227
        Loss on extinguishment of debt......................................      --             6,056
        Unrealized exchange loss............................................        730            444
        Restricted unit plan costs .........................................        576            469
        (Increase) decrease in receivables..................................    (22,189)         3,867
        (Increase) decrease in inventories..................................      1,742         (3,489)
        (Increase) in other assets..........................................     (2,172)        (1,797)
        Increase (decrease) in accounts payable.............................        433         (8,588)
        (Decrease) in accrued liabilities...................................       (356)        (3,794)
        Increase in income taxes payable....................................      3,374          5,555
        Increase in other liabilities.......................................      1,990          1,185
        Increase in minority interest.......................................      2,674          2,210
                                                                               --------      ---------
           Net cash provided by operating activities........................     21,782         31,196
                                                                               --------      ---------
Cash flows from investing activities:
   Capital expenditures....................................................     (17,452)       (15,935)
   Acquisition of business, net of cash acquired (Note 3)*.................       --           (76,166)
   Proceeds from sales or disposals of long-term assets....................       --                 6
                                                                               --------      ---------
           Net cash used for investing activities..........................     (17,452)       (92,095)
                                                                               --------      ---------
Cash flows from financing activities:
   Proceeds from long-term debt............................................       --           362,252
   Repayment of long-term debt.............................................      (8,696)      (292,273)
   Capital contribution from parent........................................       --             6,000
   Dividends...............................................................     (20,000)        (1,100)
                                                                               --------      ---------
           Net cash provided by (used for) financing activities............     (28,696)        74,879
                                                                               --------      ---------
Effect of exchange rate changes on cash....................................         (41)           (58)
                                                                               --------      ---------
Increase (decrease) in cash and cash equivalents...........................     (24,407)        13,922
Cash and cash equivalents at beginning of period...........................      32,742          9,023
                                                                               --------      ---------
Cash and cash equivalents at end of period.................................    $  8,335      $  22,945
                                                                               ========      =========

Supplemental information:
   Cash paid for income taxes..............................................    $  9,901      $   5,804
                                                                               ========      =========
   Cash paid for interest..................................................    $ 10,053      $  10,946
                                                                               ========      =========
* Purchase of business, net of cash acquired
     Working capital, other than cash......................................                  $  (5,495)
     Plant, property and equipment.........................................                    (31,086)
     Other assets..........................................................                    (39,585)
     Noncurrent liabilities................................................                      --
                                                                                             ---------
           Net cash used to acquire business...............................                  $ (76,166)
                                                                                             =========


      See the accompanying notes to the consolidated financial statements.


                                      -3-





<PAGE>
<PAGE>



                          GENERAL CHEMICAL CORPORATION
                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

                FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 1998
                             (DOLLARS IN THOUSANDS)
                                   (UNAUDITED)


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

        The accompanying unaudited consolidated financial statements include the
accounts of The General Chemical Corporation ('General Chemical' or the
'Company'). These unaudited financial statements have been prepared by the
Company pursuant to the rules and regulations of the Securities and Exchange
Commission. The financial statements do not include certain information and
footnotes required by generally accepted accounting principles. In the opinion
of management, all adjustments (consisting of normal recurring adjustments)
considered necessary for a fair presentation have been included. Operating
results for the six months ended June 30, 1998 are not necessarily indicative of
the results that may be expected for the year ending December 31, 1998. The
Company's financial statements should be read in conjunction with the financial
statements and the notes thereto included in the Company's Annual Report on Form
10-K for the year ended December 31, 1997.

        In 1997, The Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 130, 'Reporting Comprehensive Income' ('FAS
130') which the Company adopted for both interim and fiscal years beginning
after December 31, 1997. FAS 130 requires the reporting and display of
comprehensive income and its components. The Company's foreign currency
translation adjustments, which were previously reported as a separate component
of equity, are now included in Accumulated other comprehensive income within the
equity section of the Consolidated Balance Sheets. Comprehensive income for the
three and six months ended June 30, 1997 was $13,438 and $20,497, respectively.
Comprehensive income for the three and six months ended June 30, 1998 was $6,085
and $11,073, respectively.

        In June 1998, The Financial Accounting Standards Board issued Statement 
of Financial Accounting Standards No. 133, 'Accounting for Derivative 
Instruments and Hedging Activities' ('FAS 133'). FAS 133 requires that all 
derivative instruments be measured at fair value and recognized in the balance
sheet as either assets or liabilities. The Company is currently evaluating the
impact FAS 133 will have on its consolidated financial statements.

NOTE 2 - RELATED PARTY TRANSACTIONS

Management Agreement

        The Company is party to a management agreement with New Hampshire Oak.
Pursuant to the agreement, the Company was charged $1,571 and $1,586 for the
six months ended June 30, 1997 and 1998, respectively, for corporate
supervisory and administrative services and strategic advice and guidance.
In addition, pursuant to the management agreement, during the second quarter
of 1998 the Company paid New Hampshire Oak $500 for additinoal services
provided in connection with the acquisition of Reheis, Inc. The management
agreement expires during 1999, subject to extension.

Term Loan

       During the second quarter of 1998, the Company entered into a term loan
agreement with its parent, The General Chemical Group Inc. The loan agreement
matures on June 15, 2006 with consecutive quarterly installments commencing
September 30, 1998. Proceeds from the new term loan were used to retire certain
outstanding indebtedness.

NOTE 3 - ACQUISITIONS

        On April 1, 1998, the Company acquired all of the outstanding stock of
Reheis Inc. ('Reheis'). Reheis is headquartered in New Jersey and is the world's
leading producer and supplier of the active chemical ingredients in
antiperspirants and over-the-counter antacids as well as a supplier of
pharmaceutical intermediates and other products. Funding for this transaction
was provided by existing cash and borrowings under the Company's revolving
credit facility.

        The acquisition is being accounted for under the purchase method, and
accordingly, the net assets and results of operations are included in the
consolidated financial statements from the date of acquisition, based on
valuation information available to the Company, which is subject to change as
such information is finalized. The excess of purchase price over the estimated
fair values of the tangible assets acquired is being treated as goodwill.
Goodwill is being amortized on a straight line basis over a period of 25 years.
The acquisition did not have a material pro forma impact on consolidated
earnings.


                                      -4-





<PAGE>
<PAGE>



                          GENERAL CHEMICAL CORPORATION
          NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

                FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 1998
                             (DOLLARS IN THOUSANDS)
                                   (UNAUDITED)


NOTE 4 - ADDITIONAL FINANCIAL INFORMATION

        The components of inventories were as follows:


</TABLE>
<TABLE>
<CAPTION>
                                                                                  DECEMBER 31,    JUNE 30,
                                                                                      1997          1998
                                                                                      ----          ----
<S>                                                                                 <C>           <C>      
        Raw materials...........................................................    $  9,063      $ 11,357
        Work in process.........................................................         247         3,705
        Finished products.......................................................      17,736        23,498
        Supplies ...............................................................      10,538        10,778
                                                                                    --------      --------
                                                                                    $ 37,584      $ 49,338
                                                                                    ========      ========
</TABLE>


NOTE 5 - LONG-TERM DEBT

         Long-term debt consists of the following:

<TABLE>
<CAPTION>
                                                                                  DECEMBER 31,    JUNE 30,
                                                                     MATURITIES       1997          1998
                                                                     ----------       ----          ----
<S>                                                                 <C>             <C>           <C>
            Bank Term Loan - floating rate.......................    1998-2001      $ 65,217      $  --
            Senior Subordinated Notes - 9.25%....................      2003          100,000         --
            Canada Senior Notes - 9.09%..........................      1999           50,787        49,915
            $130,000 U.S. Revolving Credit Facility -
             floating rate ......................................      1999           42,000         --
            Term Loan from Parent................................    1998-2006         --          284,880
                                                                                    --------      --------
            Total Debt...........................................                    258,004       334,795
            Less:  Current Portion...............................                     17,392        51,815
                                                                                    --------      --------
            Net Long-Term Debt...................................                   $240,612      $282,980
                                                                                    ========      ========
</TABLE>

         The Company has entered into a term loan agreement with its parent, The
General Chemical Group Inc. The loan agreement matures on June 15, 2006 with
consecutive quarterly installments commencing September 30, 1998. The agreement
bears interest at a rate equal to a spread over a reference rate chosen by the
Company from various options.

         Proceeds from the new term loan were used to retire certain outstanding
indebtedness. In connection with the retirement the Company recorded an
extraordinary loss of $3,661 net of a tax benefit of $2,396, related to the
early retirements.


NOTE 6 - COMMITMENTS AND CONTINGENCIES

         Richmond Works July 26, 1993 Incident. On July 26, 1993 a pressure
relief device on a railroad tank car containing oleum that was being unloaded at
the Company's Richmond, California, facility, ruptured during the unloading
process, causing the release of a significant amount of sulfur trioxide.
Approximately 150 lawsuits seeking substantial amounts of damages were filed
against the Company on behalf of in excess of 60,000 claimants in municipal and
superior courts of California (Contra Costa and San Francisco Counties) and in
federal court (United States District Court for the Northern District of


                                      -5-






<PAGE>
<PAGE>



                          GENERAL CHEMICAL CORPORATION
          NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

                FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 1998
                             (DOLLARS IN THOUSANDS)
                                   (UNAUDITED)


California). All state court cases were coordinated before a coordination trial
judge (In Re GCC Richmond Works Cases, JCCP No. 2906) and the federal court
cases were stayed until completion of the state court cases.

         After several months of negotiation under the supervision of a
settlement master, the Company and a court-approved plaintiffs' management
committee executed a comprehensive settlement agreement which resolved the
claims of approximately 95 percent of the claimants who filed lawsuits arising
out of the July 26th incident, including the federal court cases. After a final
settlement approval hearing on October 27, 1995, the coordination trial judge
approved the settlement on November 22, 1995. Pursuant to the terms of the
settlement agreement, the Company, with funds to be provided by its insurers
pursuant to the terms of its insurance policies, has agreed to make available a
maximum of $180,000 to implement the settlement. In addition, the settlement
agreement provides, among other things, that while claimants may 'opt out' of
the compensatory damages portion of the settlement and pursue their own cases
separate and apart from the class settlement mechanism, they have no right to
opt out of the punitive damages portion of the settlement. Consequently, under
the terms of the settlement, no party may seek punitive damages from the Company
outside of those provided by the settlement.

         Notices of appeal of all or portions of the settlement approved by the
court were filed by five law firms representing approximately 2,750 claimants,
with approximately 2,700 of these claimants represented by the same law firm.
Virtually all of these claimants have not specified the amount of their claims
in court documents, although the Company believes that their alleged injuries
are no different in nature or extent than those alleged by the settling
claimants. On May 8, 1996, the California Court of Appeals dismissed each of the
appeals that had been filed challenging the trial court's approval of the class
action settlement. The Court of Appeals dismissed the appeal relating to the
trial court's rulings on plaintiffs' attorney's fees on the ground that the
appealing attorneys lacked standing to appeal. The Court of Appeals also
dismissed each of the other pending appeals, ruling that the trial court's
orders and rulings approving the settlement were not presently appealable, if at
all, by the appealing claimants since they had all elected to opt out of the
settlement. The appealing attorneys and some of the appealing claimants then
filed a petition for review with the California Supreme Court which, on August
15, 1996, elected not to review the Court of Appeals' decision.

         On March 11, 1997, the coordination judge dismissed the material claims
of 1,269 of the approximately 2,750 opt-out claimants, primarily on the grounds
that they had failed to comply with previous pre-trial orders. On April 8, 1997,
the California Court of Appeals denied a petition for review of the dismissals
filed by attorneys for the dismissed opt-out claimants, and on June 8, 1997, the
California Supreme Court denied the same attorneys' petition for review of the
California Court of Appeals' denial of their prior petition. On March 20, 1998,
the coordination judge dismissed the material claims of an additional 167 of the
opt-out claimants. As of June 30, 1998, as a result of these dismissals and
various settlements, there are approximately 1,000 opt-out claimants remaining.

         It is possible that one or more of the appealing claimants, once
their opt-out cases are finally litigated through trial, may attempt to refile
all or a portion of the appeals that were dismissed by the Court of Appeals.
While there can be no assurances regarding how an appellate court might rule
in the event of such a refiling, the Company believes that the settlement
will be upheld on appeal. If the settlement is upheld on appeal, the Company
believes that any further liability in excess of the amounts made available
under the settlement agreement will not exceed the available insurance
coverage, if at all, by an amount that could be material to its financial 
condition or results of operations. In the event of a


                                      -6-





<PAGE>
<PAGE>



                          GENERAL CHEMICAL CORPORATION
          NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (CONCLUDED)

                FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 1998
                             (DOLLARS IN THOUSANDS)
                                   (UNAUDITED)


reversal or modification of the settlement on appeal, with respect to lawsuits
by any then remaining claimants (opt-outs and settling claimants who have not
signed releases) the Company believes that, whether or not it elects to
terminate the settlement in the event it is reversed or modified on appeal, it
will have adequate resources from its available insurance coverage to vigorously
defend these lawsuits through their ultimate conclusion, whether by trial or
settlement. However, in the event the settlement is overturned or modified on
appeal, there can be no assurance that the Company's ultimate liability
resulting from the July 26, 1993 incident would not exceed the available
insurance coverage by an amount which could be material to its financial
condition or results of operations, nor is the Company able to estimate or
predict a range of what such ultimate liability might be, if any.

         The Company has insurance coverage relating to this incident which
totals $200,000. The first two layers of coverage total $25,000 with a sublimit
of $12,000 applicable to the July 26, 1993 incident, and the Company also has
excess insurance policies of $175,000 over the first two layers. The Company
reached an agreement with the carrier for the first two layers whereby the
carrier paid the Company $16,000 in settlement of all claims the Company had
against that carrier. In the third quarter of 1994, the Company recorded a
$9,000 charge to earnings for costs which the Company incurred related to this
matter. The Company's excess insurance policies, which are written by two
Bermuda-based insurers, provide coverage for compensatory as well as punitive
damages. Both insurers have executed agreements with the Company confirming
their respective commitments to fund the settlement as required by their
insurance policies with the Company and as described in the settlement
agreement. In addition, these same insurers currently continue to provide
substantially the same insurance coverage to the Company.


                                      -7-





<PAGE>
<PAGE>



ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

June 30, 1998 Compared with December 31, 1997

Financial Condition

         Cash and cash equivalents were $22.9 million at June 30, 1998 as
compared with $9.0 million at December 31, 1997. During the first six months of
1998 the Company generated cash flow from operating activities of $31.2 million
and received net proceeds from debt of $70.0 million, which was used to finance
acquisitions and capital expenditures of $76.2 million and $15.9 million,
respectively.

         The Company had working capital of $25.7 million at June 30, 1998 as
compared with $36.0 million at December 31, 1997. This decrease in working
capital primarily reflects higher current portion of long-term debt, offset by
higher cash, accounts receivable and inventory balances.

         On April 1, 1998, the previously-announced acquisition of Reheis, Inc.
('Reheis') by the Company was completed. Funding for this transaction was
provided with existing cash and borrowings from the Company's revolving credit
facility.

Six Months Ended June 30, 1998, Compared with Six Months Ended June 30, 1997

Results of Operations

         The following table sets forth the results of operations and percentage
of net revenues represented by the components of operating income and expense
for the six months ended June 30, 1997 and 1998 (dollars in millions).

<TABLE>
<CAPTION>
                                                                         SIX MONTHS ENDED
                                                                             JUNE 30,
                                                                ---------------------------------
                                                                      1997                1998
                                                                -------------       -------------
<S>                                                             <C>       <C>       <C>       <C>
   Net revenues............................................     $246.8    100%      $272.8    100%
   Cost of sales...........................................      170.3     69        203.8     75
                                                                ------    ---       ------    ---
   Gross profit............................................       76.5     31         69.0     25
   Selling, general and administrative expense.............       20.8      8         23.8      9
                                                                ------    ---       ------    ---
   Operating profit........................................     $ 55.7     23%      $ 45.2     16%
                                                                ======    ===       ======    ===
</TABLE>

        Net revenues for the six months ended June 30, 1998 increased $26
million or were 10 percent higher than the prior year level due primarily to
sales of Peridot Holdings, Inc. ('Peridot') and Reheis, Inc, which were acquired
on July 1, 1997 and April 1, 1998, respectively, offset by weaker pricing for
Industrial Chemicals and lower export soda ash volumes to Asia.

        Gross profit for the first six months of 1998 was $69.0 million compared
with $76.5 million for the comparable period in 1997. Gross profit as a
percentage of net revenues was 25 percent and 31 percent for the first six
months of 1997 and 1998, respectively. This decrease is primarily due to lower
pricing for Industrial Chemicals.

        Selling, general and administrative expense compared with the prior year
increased $3.0 million. This increase is due primarily to the abovementioned
acquisitions of Peridot and Reheis.

        Interest expense for the first six months of 1998 was $12.1 million
which was $1.8 million higher than the first six months of 1997 due to higher
outstanding debt balances.


                                      -8-





<PAGE>
<PAGE>



        Interest  income for the first six months of 1998 was $.4 million  which
was $.4  million  lower than the first six months of 1997 due to lower average
cash balances.

        The foreign currency transaction loss for the first six months of 1998
was $.4 million versus a loss of $.5 million for the first six months of 1997.
This is principally due to the impact of exchange rate fluctuations on the
Company's Canadian subsidiary.

        Minority interest for the first six months of 1998 was $8.1 million
which was $4.2 million lower than the first six months of 1997, reflecting lower
earnings due to lower soda ash pricing of General Chemical (Soda Ash) Partners.

        Net income for the first six months of 1997 was $11.2 million compared
with $20.5 million for the same period in 1997, due to the foregoing reasons and
a $3.7 million extraordinary item related to the early retirement of debt
recorded in the second quarter of 1998.


                                      -9-





<PAGE>
<PAGE>



                           PART II. OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

        The following developments have occurred with respect to this matter
since the filing of the Company's Quarterly Report on Form 10-Q for the period
ended March 31, 1998:

        In April of 1998, approximately 40 employees (and their respective
spouses) of the Sun Company, Inc. refinery in Marcus Hook, Pennsylvania, filed
lawsuits in the Court of Common Pleas, Delaware County, Pennsylvania, against
the Company, alleging that sulfur dioxide (SO2) and sulfur trioxide (SO3)
releases from the Company's Delaware Valley facility caused various respiratory
and pulmonary injuries. Unspecified damages in excess of $50,000 for each
plaintiff are sought. The Company has answered the complaints and will
vigorously defend itself in this matter. The Company believes that its available
insurance provides adequate coverage in the event of an adverse result in this
matter and that, based on currently-available information, this matter will not
have a material adverse effect on the Company's financial condition or results
of operations.


                                      -10-





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<PAGE>



ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

        a)  (27)  Financial Data Schedule.

        b) No report on Form 8-K has been filed by the Company during the period
           covered by this report.


                                      -11-





<PAGE>
<PAGE>



                                   SIGNATURES

        Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                                                    GENERAL CHEMICAL CORPORATION
                                                    ----------------------------
                                                            (Registrant)


Date    July 31, 1998        /s/ Michael R. Herman
     ----------------            -----------------------------------------------
                                 MICHAEL R. HERMAN
                                 Vice President and General Counsel

Date    July 31, 1998        /s/ Ralph M. Passino
     ----------------            -----------------------------------------------
                                 RALPH M. PASSINO
                                 Chief Financial Officer and Vice President
                                 of Administration (Principal Financial Officer)


                                      -12-





<PAGE>
<PAGE>



                                  EXHIBIT INDEX
<TABLE>
<CAPTION>

EXHIBIT NUMBER          DESCRIPTION                                   PAGE
--------------          -----------                                   ----
<S>                     <C>                                           <C>
      27                Financial Data Schedule                        14
                        (EDGAR Filings Only)
</TABLE>


                                      -13-



                          STATEMENT OF DIFFERENCES
                          ------------------------

    Characters normally expressed as subscript shall be expressed as baseline
    characters.






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