<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 September 30, 2001
                                       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 1-13404


                         THE GENERAL CHEMICAL GROUP INC.
             (Exact name of Registrant as specified in its charter)


<TABLE>
<S>                                           <C>
            Delaware                                     02-0423437
(State of other jurisdiction of                      (I.R.S. Employer
 incorporation or organization)                    Identification Number)

            Liberty Lane
       Hampton, New Hampshire                               03842
(Address of principal executive offices)                 (Zip Code)
</TABLE>



       Registrant's telephone number, including area code: (603) 929-2606


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
                                       ---    ---

The number of shares of Common Stock outstanding at November 1, 2001 was
3,011,904.
The number of shares of Class B Common Stock outstanding at November 1, 2001
was 700,639.


================================================================================




<PAGE>


                         THE GENERAL CHEMICAL GROUP INC.

                                    FORM 10-Q

                    QUARTERLY PERIOD ENDED SEPTEMBER 30, 2001

                                      INDEX


<TABLE>
<CAPTION>
                                                                                                    Page No.
                                                                                                    --------
<S>                                                                                               <C>
PART I.  FINANCIAL INFORMATION:

     Item 1.  Financial Statements

         Consolidated Statements of Operations - Three Months
          And Nine Months Ended September 30, 2000 and 2001.........................................      1

         Consolidated Balance Sheets - December 31, 2000 and
          September 30, 2001........................................................................      2

         Consolidated Statements of Cash Flows - Nine Months
          Ended September 30, 2000 and 2001.........................................................      3

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

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

     Item 3.  Qualitative and Quantitative Disclosures about Market Risk............................    9-10

PART II.  OTHER INFORMATION:

     Item 6.  Exhibits and Reports on Form 8-K......................................................     10

     SIGNATURES.....................................................................................     11
</TABLE>




<PAGE>



                          Part I. Financial Information


Item 1.  Financial Statements


                         THE GENERAL CHEMICAL GROUP INC.

                      CONSOLIDATED STATEMENTS OF OPERATIONS
                      (In thousands, except per share data)
                                   (unaudited)

<TABLE>
<CAPTION>
                                                                        Three Months Ended           Nine Months Ended
                                                                          September 30,                September 30,
                                                                       --------------------      -------------------------
                                                                        2000         2001          2000             2001
                                                                        ----         ----          ----             ----
<S>                                                                  <C>          <C>          <C>              <C>
Net sales.......................................................       $74,302      $73,201      $220,224         $217,896
Cost of sales...................................................        64,507       65,532       192,977          199,335
Selling, general and administrative expense.....................         4,468        3,886        12,723           12,108
Restructuring  charge ..........................................             -            -             -            1,721
                                                                       -------      -------      --------         --------
Operating profit ...............................................         5,327        3,783        14,524            4,732
Interest expense................................................         3,977        3,817        11,750           11,865
Gain on sale of assets..........................................         7,699            -         7,699                -
Interest income.................................................           319          154           914              640
Other (income) expense, net.....................................           (48)                        24              470
                                                                       -------      -------      --------         --------
Income (loss) before income taxes and minority interest.........         9,416         (183)       11,363           (6,963)
Minority interest...............................................         4,096        1,765         9,522            4,083
                                                                       -------      -------      --------         --------
Income (loss) before income taxes...............................         5,320       (1,948)        1,841          (11,046)
Income tax provision (benefit) .................................         2,037           21          (403)             154
                                                                       -------      -------      --------         --------
           Net income (loss)....................................       $ 3,283      $(1,969)      $ 2,244         $(11,200)
                                                                       =======      ========     ========         ========

Earnings (loss) per common share:
           Basic................................................       $  1.56      $  (.53)     $   1.07         $  (3.84)
                                                                       =======      =======      ========         ========
           Diluted..............................................       $  1.52      $  (.53)     $   1.04         $  (3.84)
                                                                       =======      =======      ========         ========
</TABLE>




        See the accompanying notes to consolidated financial statements.


                                      -1-




<PAGE>


                         THE GENERAL CHEMICAL GROUP INC.

                           CONSOLIDATED BALANCE SHEETS
                      (In thousands, except per share data)


<TABLE>
<CAPTION>
                                                  ASSETS

                                                                                              December 31,    September 30,
                                                                                                  2000            2001
                                                                                                  ----            ----
                                                                                                               (unaudited)
<S>                                                                                              <C>               <C>
Current assets:
       Cash and cash equivalents...................................................              $  20,815         $ 24,242
       Receivables, net............................................................                 58,872           46,194
       Inventories.................................................................                 21,707           20,969
       Deferred income taxes.......................................................                  8,455            7,999
       Other current assets........................................................                 13,792            7,144
                                                                                                 ---------         ---------
          Total current assets.....................................................                123,641          106,548
Property, plant and equipment, net.................................................                108,883          102,576
Other assets                                                                                        18,476           19,395
                                                                                                 ---------         --------
          Total assets.............................................................               $251,000         $228,519
                                                                                                 =========         ========

                                              LIABILITIES AND EQUITY (DEFICIT)

Current liabilities:
      Accounts payable.............................................................              $  32,097         $ 23,325
      Accrued liabilities..........................................................                 42,595           34,952
                                                                                                 ---------         --------
          Total current liabilities................................................                 74,692           58,277
Long-term debt.....................................................................                149,314          146,879
Other liabilities..................................................................                 82,105           79,969
                                                                                                 ---------         --------
          Total liabilities........................................................                306,111          285,125
Minority interest..................................................................                 41,446           38,931
Equity (Deficit):
      Preferred Stock, $.01 par value; authorized 1,000,000
        shares; none issued or outstanding.........................................                     --               --
      Common Stock, $.01 par value; authorized 10,000,000
        shares; issued and outstanding: 1,865,051 and 3,186,093 shares at
        December 31, 2000 and September 30, 2001, respectively.....................                    186              317
      Class B Common Stock, $.01 par value; authorized
        4,000,000 shares, issued and outstanding: 395,842 and 700,639
        shares at December 31, 2000 and September 30, 2001, respectively...........                     39               70
      Capital deficit..............................................................               (104,788)         (95,114)
      Accumulated other comprehensive loss.........................................                 (4,205)          (1,821)
      Retained earnings............................................................                 45,463           34,263
      Treasury stock, at cost: 171,999 and 174,189 shares at
        December 31, 2000 and September 30, 2001, respectively.....................                (33,252)         (33,252)
                                                                                                 ---------         --------
      Total equity (deficit).......................................................                (96,557)         (95,537)
                                                                                                 ---------         --------
          Total liabilities and equity (deficit)...................................              $ 251,000         $228,519
                                                                                                 =========         ========
</TABLE>


        See the accompanying notes to consolidated financial statements.


<PAGE>


                                      -2-




<PAGE>


                         THE GENERAL CHEMICAL GROUP INC.

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (In thousands)
                                   (unaudited)

<TABLE>
<CAPTION>
                                                                                       Nine Months Ended
                                                                                         September 30,
                                                                                         -------------
                                                                                      2000            2001
                                                                                    --------        --------
<S>                                                                                 <C>             <C>
Cash flows from operating activities:
       Net income (loss) ....................................................       $  2,244        $(11,200)
       Adjustments to reconcile net income (loss) to net cash provided by
         operating activities:
         Depreciation and amortization.......................................         14,504          13,356
         Gain on sale of assets..............................................         (7,699)             --
         (Increase) decrease in receivables..................................           (258)         12,678
         Decrease in inventories.............................................          1,587             738
         Decrease in accounts payable........................................           (631)         (8,772)
         Decrease in accrued liabilities.....................................         (1,129)         (7,643)
         (Increase) decrease in other liabilities and assets, net............           (678)          3,914
         Increase (decrease) in minority interest............................            602          (2,515)
                                                                                    --------        --------
             Net cash provided by operating activities.......................          8,542             556
                                                                                    --------        --------
Cash flows from investing activities:
       Capital expenditures..................................................        (12,125)         (7,183)
       Disposal of property, plant and equipment.............................            381             218
       Proceeds from sale of assets..........................................          8,080              --
                                                                                    --------        --------
             Net cash used for investing activities..........................         (3,664)         (6,965)
                                                                                    --------        --------
Cash flows from financing activities:
       Proceeds from sale of stock...........................................             --           9,686
       Other financing activities............................................            215             150
                                                                                    --------        --------
             Net cash provided by financing activities.......................            215           9,836
                                                                                    --------        --------
Increase in cash and cash equivalents........................................          5,093           3,427
Cash and cash equivalents at beginning of period.............................         26,630          20,815
                                                                                    --------        --------
Cash and cash equivalents at end of period...................................       $ 31,723        $ 24,242
                                                                                    ========        ========

Supplemental disclosure of cash flow information:
       Cash paid (refunded) during the period for:
         Interest............................................................       $  8,438        $  8,315
         Taxes...............................................................             --          (4,294)
</TABLE>


        See the accompanying notes to consolidated financial statements.


                                      -3-




<PAGE>


                         THE GENERAL CHEMICAL GROUP INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
             For the three and nine months ended September 30, 2001
                             (Dollars in thousands)
                                   (unaudited)


Note 1 - Basis of Presentation

         The General Chemical Group Inc. ("GCG" or the "Company") is a leading
North American supplier of soda ash and calcium chloride to a broad range of
industrial and municipal customers. The primary end markets for soda ash include
glass production, sodium-based chemicals, powdered detergents, water treatment
and other industrial end uses. Calcium chloride is mainly used for dust control
and roadbed stabilization during the summer and melting ice during the winter.

         The accompanying unaudited consolidated financial statements include
the accounts of GCG and its subsidiaries (collectively, 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 nine
months ended September 30, 2001 are not necessarily indicative of the results
that may be expected for the year ending December 31, 2001. The Company's
financial statements should be read in conjunction with the financial statements
and the notes thereto for the year ended December 31, 2000 included in the Form
10-K.

         In July 2001, the Financial Accounting Standards Board ("FASB"), issued
Statement of Financial Accounting Standards ("SFAS") No. 141, "Business
Combinations" and No. 142, "Goodwill and Other Intangible Assets". Statement No.
141 requires that all business combinations initiated after June 30, 2001, be
accounted for using the purchase method of accounting. In addition, it further
clarifies the criteria for recognition of intangible assets separately from
goodwill. Statement No. 142 establishes new standards for goodwill acquired in a
business combination and eliminates the amortization of goodwill over its
estimated useful life. Rather, goodwill will now be tested for impairment
annually, or more frequently if circumstances indicate potential impairment, by
applying a fair value based test. The Company expects to adopt this statement
during the first quarter of fiscal 2002. Management does not believe that the
adoption of these standards will have a material impact on the Company's
financial position or results of operations.

         In August 2001, the FASB issued SFAS No. 143, Accounting for Asset
Retirement Obligations. SFAS No. 143 addresses financial accounting and
reporting for obligations associated with the retirement of tangible long-lived
assets and the associated asset retirement costs. SFAS No. 143 requires that the
fair value of a liability for an asset retirement obligation be recognized in
the period in which it is incurred if a reasonable estimate of fair value can be
made. The associated asset retirement costs are capitalized as part of the
carrying amount of the long-lived asset. SFAS No. 143 is effective January 1,
2003. The Company does not believe that the adoption of this pronouncement will
have a material impact on the consolidated results of operations.

         In October 2001, the FASB issued SFAS No. 144, Accounting for the
Impairment or Disposal of Long-Lived Assets. SFAS No. 144 addresses financial
accounting and reporting for the impairment of long-lived assets and for long-
lived assets to be disposed of. SFAS No. 144 supersedes FASB Statement No. 121,
Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to
be Disposed Of. However, SFAS No.144 retains the fundamental provisions of
SFAS No. 121 for (a) recognition and measurement of the impairment of long-
lived assets to be held and used and (b) measurement of long-lived assets to be
disposed of by sale. SFAS No. 144 is effective January 1, 2002. The Company
does not believe that the adoption of this pronouncement will have a material
impact on the consolidated results of operations.


                                      -4-




<PAGE>


                         THE GENERAL CHEMICAL GROUP INC.

            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
             For the three and nine months ended September 30, 2001
                             (Dollars in thousands)
                                   (unaudited)


         Certain prior-period amounts have been reclassified to conform with the
current-year presentation.

Note 2 - Comprehensive Income (Loss)

         Total comprehensive income (loss) is comprised of net income (loss) and
foreign currency translation gains (losses). Total comprehensive income (loss)
for the nine months ended September 30, 2000 and 2001 was $1,832 and ($8,816)
respectively.

Note 3 - Earnings (Loss) Per Share

         The computation of basic earnings (loss) per share is based on the
weighted average number of common shares and contingently issuable shares
outstanding during the period. The computation of diluted earnings per share
assumes the foregoing and, in addition, the exercise of all stock options and
restricted units, using the treasury stock method.

         The components of the denominator for basic and diluted earnings per
common share are reconciled as follows:

<TABLE>
<CAPTION>
                                                      Three Months Ended            Nine Months Ended
                                                         September 30,                September 30,
                                                         -------------                -------------
                                                    2000           2001             2000        2001
                                                    ----           ----             ----        ----
<S>                                               <C>           <C>              <C>          <C>
Basic earnings per common share:
     Weighted average common shares
     Outstanding..............................    2,109,613     3,729,390        2,102,269    2,920,151
                                                  =========     =========        =========    =========
Diluted earnings per common share:
     Weighted average common shares
     Outstanding..............................    2,109,613     3,729,398        2,102,269    2,920,151
     Options and Restricted Units.............       48,399             -           46,334            -
                                                  ---------     ---------        ---------    --------
Denominator for diluted earnings per
     common share............................     2,158,012     3,729,398        2,148,603    2,920,151
                                                  =========     =========        =========    =========
</TABLE>




         At September 30, 2000 and 2001, options to purchase 233,950 shares and
212,606 shares of common stock, respectively, were not included in the
computation of diluted earnings per common share because the exercise price was
greater than the average market price of the common shares. The options, which
expire during 2008 and 2009 and 2010, were still outstanding at September 30,
2001. At September 30, 2001, 27,235 restricted units and options were not
included in the calculation of diluted earnings per common share because their
inclusion would have resulted in an antidilutive effect.


                                      -5-




<PAGE>


                         THE GENERAL CHEMICAL GROUP INC.

            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
             For the three and nine months ended September 30, 2001
                             (Dollars in thousands)
                                   (unaudited)


Note 4 - Additional Financial Information


<TABLE>
<CAPTION>
       The components of inventories were as follows:                       December 31,      September 30,
                                                                                2000              2001
                                                                               ----              ----
                                                                                             (unaudited)
          <S>                                                             <C>             <C>
               Raw materials......................................            $ 3,165         $ 1,517
               Work in process....................................              1,665           1,670
               Finished products..................................             10,743          11,287
               Supplies and containers............................              6,134           6,495
                                                                              -------         ------
                                                                              $21,707         $20,969
                                                                              =======         =======
</TABLE>


Note 5 - Restructuring

         In the fourth quarter of 2000, the Company recorded a pretax
restructuring charge, including related asset writedowns and workforce
reductions, of $59.8 million. The restructuring involves the idling of the
Company's synthetic soda ash production capacity in Amherstburg, Ontario,
Canada. The balance of the restructuring accrual at December 31, 2000 was $16.1
million. Spending against this accrual was $7.3 million during the nine months
ended September 30, 2001.

         In the second quarter of 2001, the Company provided for additional
pretax restructuring charges of $1.7 million or $0.68 per diluted share for
revised actuarial estimates of employee termination benefits.

Note 6 - Common Stock

         On May 16, 2001, the shareholders of the Company approved a reverse
split of the Company's common stock. The ratio of the reverse split was one
share for each 10 shares held by a shareholder as of 5:00 p.m. Eastern Daylight
Time on July 13, 2001. The accompanying consolidated financial statements
reflect the reverse split for each period presented.

Note 7 - Related Party Transactions

Management Agreement

         The Company is party to a management agreement with Latona Associates
Inc. (which is controlled by a stockholder of the Company) under which the
Company receives corporate supervisory and administrative services and strategic
guidance for a quarterly fee. This management fee was $1,161 and $1,210 for the
nine months ended September 30, 2000 and 2001, respectively.

Transition Support Agreement

         The Company and GenTek Inc. ("GenTek") have entered into various
transition agreements that provide mechanisms for an orderly transition
following the spin-off of GenTek from the Company. For the nine months ended
September 30, 2000 and 2001, the Company paid GenTek $1,296 and $1,016 related
to these transition agreements.


                                      -6-




<PAGE>


                         THE GENERAL CHEMICAL GROUP INC.

            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Concluded)
             For the three and nine months ended September 30, 2001
                             (Dollars in thousands)
                                   (unaudited)

Other Transactions

         The Company supplies soda ash to GenTek. For the nine months ended
September 30, 2000 and 2001, sales to GenTek amounted to $3,390 and $3,036,
respectively.

Note 8 - Geographic Information


<TABLE>
<CAPTION>
                                                               Net Sales               Operating Profit (Loss)
                                                          Nine Months Ended               Nine Months Ended
                                                             September 30,                  September 30,
                                                             -------------                  -------------

                                                         2000           2001             2000          2001
                                                         ----           ----             ----          ----
    <S>                                              <C>            <C>               <C>           <C>
     United States.............................        $161,304       $173,191          $17,841       $ 7,258
     Foreign  .................................          82,744         78,154           (3,317)       (2,526)
     Elimination ..............................         (23,824)       (33,449)              --            --
                                                       --------       --------          -------       -------
                                                       $220,224       $217,896          $14,524       $ 4,732
                                                       ========       ========          =======       =======
</TABLE>

         Operating profit for the foreign segment includes additional
restructuring charges of $1,721 recorded in the second quarter of 2001.

Note 9 - Segment Information

         Industry segment information is summarized as follows:

<TABLE>
<CAPTION>
                                                         Three Months Ended               Nine Months Ended
                                                            September 30,                    September 30,
                                                            -------------                    -------------
                                                        2000           2001               2000          2001
                                                        ----           -----              ----          ----
<S>                                                  <C>            <C>                <C>          <C>
     Net sales:
          Soda Ash.............................        $61,576        $57,612           $179,961      $171,657
          Calcium Chloride.....................         12,726         15,589             40,263       46,239
                                                       -------        -------           --------      --------
                       Total Segment...........        $74,302        $73,201           $220,224      $217,896
                                                       =======        =======           ========      ========

     Income (loss) before income taxes:
          Soda Ash.............................        $ 1,249        $ 2,441           $  2,667      $  1,199
          Calcium Chloride.....................          1,148           (175)             5,288           972
                                                       -------        -------           --------      --------
                       Total Segment...........          2,397          2,266              7,955         2,171

     Eliminations and other corporate expenses.          2,923         (4,214)            (6,114)       13,217
                                                       -------        -------           --------      --------
                                                       $ 5,320        $(1,948)          $  1,841      $(11,046)
                                                       =======        =======           ========      ========
</TABLE>


         Income (loss) before income taxes for the soda ash segment includes
additional restructuring charges of $1,721 recorded in the second quarter of
2001. Income (loss) before income taxes for elimination and other corporate
expenses includes a gain on sale of assets of $7,699 recorded in the third
quarter of 2000.



                                      -7-




<PAGE>


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

September 30, 2001 Compared with December 31, 2000


Financial Condition

         Cash and cash equivalents were $24.2 million at September 30, 2001
compared with $20.8 million at December 31, 2000. During the first nine months
of 2001, the Company provided cash flow from operating activities of $.6
million, used cash of $7.0 million for capital expenditures and provided cash
flow from financing activities of $9.8 million.

         The Company had working capital of $48.3 million at September 30, 2001
as compared with $48.9 million at December 31, 2000. The decrease in working
capital principally reflects lower receivables and other current assets, due to
the receipt of $4.3 million of income tax refunds partially offset by lower
accounts payable and accrued liabilities, and higher cash balances.

         The Company is significantly leveraged. At September 30, 2001,
outstanding indebtedness consisted of $100 million of Senior Subordinated Notes
and $46.9 million outstanding under the Senior Secured Credit Facility. The
Company amended the financial covenants and other terms of its Senior Secured
Credit Facility on March 7, 2001. These amendments provide for more flexible
financial covenants for 2001 and 2002 in exchange for more restrictive covenants
regarding restricted payments, investments, incurrence of indebtedness, sales of
assets, payment of dividends or other distributions to shareholders and related
matters during these two years. In addition, the maximum amount the Company can
borrow under its Senior Secured Credit Facility during 2001 and 2002 was reduced
from $85 million to $70 million. The Company's leverage and debt service
requirements, among other things, (1) impose operating and financial
restrictions on the Company, (2) increase its vulnerability to economic
downturns, (3) potentially limit the Company's ability to respond to competitive
pressures, and (4) may limit the Company's ability to obtain additional
financing in the future for working capital, capital expenditures, acquisitions,
strategic investments or general corporate purposes.

Results of Operations

September 30, 2001 Compared with December 31, 2000

         Net sales for the three and nine month periods ended September 30, 2001
decreased 1.5 percent and 1.1 percent to $73.2 million and $217.9 million,
respectively, from $74.3 million and $220.2 million for the comparable prior
year periods.

         Gross profit for the three month period ended September 30, 2001
decreased $2.1 million to $7.7 million from $9.8 million for the comparable
prior year period. Gross profit as a percentage of net sales for the three month
period ended September 30, 2001 decreased to 10.5 percent from 13.2 percent for
the same period in 2000. Gross profit for the nine month period ended September
30, 2001 decreased $8.7 million to $18.6 million from $27.3 million for the
comparable prior year period. Gross profit as a percentage of net sales for the
nine month period ended September 30, 2001 decreased to 8.5 percent from 12.4
percent for the same period in 2000. This decrease was primarily due to higher
energy costs at General Chemical (Soda Ash) Partners as well as costs incurred
to start up operations at our Manistee, Michigan calcium chloride facility,
partially offset by higher calcium chloride prices and lower operating costs
resulting from the April 2001 idling of the Company's synthetic soda ash
production capacity in Amherstburg, Ontario, Canada.


                                      -8-




<PAGE>


         Selling, general and administrative expense as a percentage of net
sales for the three and nine month period ended September 30, 2001 and 2000
decreased to 5.3 percent from 6.0 percent and to 5.6 percent from 5.8 percent.

         In the second quarter of 2001, the Company recorded a restructuring
charge of $1.7 million for revised actuarial estimates of employee termination
benefits.

         In the third quarter of 2000, the Company sold a quarry at its
Amherstburg, Ontario location for $8.1 million resulting in a pre-tax gain of
$7.7 million.

         Interest expense for the three and nine month periods ended September
30, 2001 was $3.8 million and $11.9 million, which was $0.2 million lower and
$0.1 million higher, respectively, than the comparable prior period levels as a
result of lower interest rates and amendments to the Company's Senior Secured
Credit Facility.

         Minority interest for the three and nine month periods ended September
30, 2001 was $1.8 million and $4.1 million, respectively, versus $4.1 million
and $9.5 million for the same period in 2000. The decreases in both periods
reflect lower earnings at General Chemical (Soda Ash) Partners primarily due to
higher energy costs.

         Net loss was ($2.0) million and ($11.2) million for the three and nine
month periods ended September 30, 2001, respectively, versus net income of $3.3
million and $2.2 million for the comparable prior year periods, for the
foregoing reasons.

Accounting Pronouncements

         In July 2001, the Financial Accounting Standards Board ("FASB"), issued
Statement of Financial Accounting Standards ("SFAS") No. 141, "Business
Combinations" and No. 142, "Goodwill and Other Intangible Assets". Statement No.
141 requires that all business combinations initiated after June 30, 2001, be
accounted for using the purchase method of accounting. In addition, it further
clarifies the criteria for recognition of intangible assets separately from
goodwill. Statement No. 142 establishes new standards for goodwill acquired in a
business combination and eliminates the amortization of goodwill over its
estimated useful life. Rather, goodwill will now be tested for impairment
annually, or more frequently if circumstances indicate potential impairment, by
applying a fair value based test. The Company expects to adopt this statement
during the first quarter of fiscal 2002. Management does not believe that the
adoption of these standards will have a material impact on the Company's
financial position or results of operations.

         In August 2001, the FASB issued SFAS No. 143, Accounting for Asset
Retirement Obligations. SFAS No. 143 addresses financial accounting and
reporting for obligations associated with the retirement of tangible long-lived
assets and the associated asset retirement costs. SFAS No. 143 requires that the
fair value of a liability for an asset retirement obligation be recognized in
the period in which it is incurred if a reasonable estimate of fair value can be
made. The associated asset retirement costs are capitalized as part of the
carrying amount of the long-lived asset. SFAS No. 143 is effective January 1,
2003. The Company does not believe that the adoption of this pronouncement will
have a material impact on the consolidated results of operations.

         In October 2001, the FASB issued SFAS No. 144, Accounting for the
Impairment or Disposal of Long-Lived Assets. SFAS No. 144 addresses financial
accounting and reporting for the impairment of long-lived assets and for
long-lived assets to be disposed of. SFAS No. 144 supersedes FASB Statement No.
121, Accounting for the Impairment of Long-Lived Assets and for Long-Lived
Assets to be Disposed Of. However, SFAS No. 144 retains the fundamental
provisions of SFAS No. 121 for (a) recognition and measurement of the impairment
of long-lived assets to be held and used and (b) measurement of long-lived
assets to be disposed of by sale. SFAS No. 144 is effective January 1, 2002. The
Company does not believe that the adoption of this pronouncement will have a
material impact on the consolidated results of operations.


                                      -9-




<PAGE>



Item 3.  Qualitative and Quantitative Disclosures about Market Risk

         Market risk represents the risk of loss that may impact the
consolidated financial position, results of operations or cash flows of the
Company. The Company is exposed to market risk in the areas of interest and
foreign exchange rates.

         The Company's exposure to market risk for changes in interest rates
relates primarily to the Company's obligations under its Senior Secured Credit
Facility as interest for the loans is based on a floating rate. The Company has
no cash flow exposure due to rate changes on its fixed interest rate under the
$100 million Senior Subordinated Notes as of September 30, 2001.

         At September 30, 2001 the Company had $46.9 million in borrowings under
the Senior Secured Credit Facility. Accordingly, a one percent change in the
floating rate will result in interest expense fluctuating annually by
approximately $0.5 million.

         The Company is also exposed to foreign exchange risk primarily to the
extent of adverse fluctuation in the Canadian dollar.

         The Company does not expect to enter into financial instruments for
trading purposes. The Company anticipates periodically entering into interest
rate swap agreements to effectively convert all or a portion of its
floating-rate debt to fixed-rate debt in order to reduce its exposure to
movements in interest rates. Such agreements would involve the exchange of fixed
and floating interest rate payments over the life of the agreement without the
exchange of the underlying principal amounts. The Company also anticipates
periodically entering into currency agreements to partially reduce its exposure
to movements in currency exchange rates. Swap agreements will only be entered
into with strong creditworthy parties.


Item 6.  Exhibits and Reports on Form 8-K

(a) Exhibits:

     None


(b) Reports on Form 8-K:

     None


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<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.




                                 THE GENERAL CHEMICAL GROUP INC.
                                 -------------------------------
                                           Registrant



Date   November 14, 2001         /s/ John M. Kehoe, Jr.
       -----------------             ----------------------------
                                     John M. Kehoe, Jr.
                                     President and Chief Executive Officer
                                    (Principal Executive Officer) and Director



Date   November 14, 2001         /s/ David S. Graziosi
       -----------------             ----------------------------
                                     David S. Graziosi
                                     Vice President and Chief Financial Officer
                                    (Principal Financial and Accounting Officer)



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