<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, 1997
                                       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)

                 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)

       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 July 25, 1997 was
11,186,059.
The number of shares of Class B Common Stock outstanding at July 25, 1997 was
9,768,421.

--------------------------------------------------------------------------------
--------------------------------------------------------------------------------





<PAGE>
<PAGE>






                         THE GENERAL CHEMICAL GROUP INC.

                                    FORM 10-Q

                      QUARTERLY PERIOD ENDED JUNE 30, 1997

                                      INDEX

<TABLE>
<CAPTION>
                                                                          PAGE NO.
                                                                          ---------
<S>                                                                            <C>
PART I. FINANCIAL INFORMATION:

    Item 1. Financial Statements

       Consolidated Statements of Operations - Three Months and
        Six Months Ended June 30, 1996 and 1997........................        1

       Consolidated Balance Sheets - December 31, 1996 and
        June 30, 1997..................................................        2

       Consolidated Statements of Cash Flows - Six Months
        Ended June 30, 1996 and 1997...................................        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 2.  Changes in Securities.....................................      10

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

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

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

    EXHIBITS...........................................................    14-15
</TABLE>




<PAGE>
<PAGE>





                          PART I. FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS.

                         THE GENERAL CHEMICAL GROUP INC.
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                        (IN THOUSANDS, EXCEPT SHARE DATA)
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                               THREE MONTHS ENDED            SIX MONTHS ENDED
                                                                      JUNE 30,                   JUNE 30,
                                                               ------------------           ------------------
                                                               1996          1997           1996          1997
                                                               ----          ----           ----          ----
<S>                                                        <C>           <C>             <C>          <C>        
Net revenues.............................................  $  160,130    $   164,957     $  304,701   $   314,523
Cost of sales............................................     107,063        110,315        210,123       214,679
Selling, general and administrative expense..............      27,551         15,398         41,532        30,512
                                                           ----------    -----------     ----------   -----------
Operating profit.........................................      25,516         39,244         53,046        69,332
Interest expense.........................................       6,245          5,093         12,709        10,350
Interest income..........................................         664            573          1,272         1,323
Foreign currency transaction (gains) losses..............         (88)           (32)          (139)          514
Other (income) expense, net..............................         494            257            408          (196)
                                                           ----------    -----------     ----------   -----------
Income before income taxes and minority interest.........      19,529         34,499         41,340        59,987
Minority interest........................................       8,311          6,121         14,769        12,342
                                                           ----------    -----------     ----------   -----------
Income before income taxes ..............................      11,218         28,378         26,571        47,645
Income tax provision.....................................       4,176         11,120         10,213        18,673
                                                           ----------    -----------     ----------   -----------
           Net income ...................................  $    7,042    $    17,258     $   16,358   $    28,972
                                                           ==========    ===========     ==========   ===========
Earnings per common and common
 equivalent share........................................  $      .33    $       .77     $      .79   $      1.27
                                                           ==========    ===========     ==========   ===========

Dividends declared per share.............................  $     .025    $       .05     $     .025   $       .10
                                                           ==========    ===========     ==========   ===========
Weighted average common and common
 equivalent shares outstanding...........................  21,505,888     22,349,659     20,621,365    22,822,753
                                                           ==========     ==========     ==========    ==========
</TABLE>


        See the accompanying notes to consolidated financial statements.



                                      -1-

<PAGE>
<PAGE>




                         THE GENERAL CHEMICAL GROUP INC.
                           CONSOLIDATED BALANCE SHEETS
                        (IN THOUSANDS, EXCEPT SHARE DATA)

                                     ASSETS
<TABLE>
<CAPTION>
                                                                                     DECEMBER 31,    JUNE 30,
                                                                                         1996          1997
                                                                                         ----          ----
                                                                                                    (UNAUDITED)
<S>                                                                                  <C>              <C>    
Current Assets:
     Cash and cash equivalents....................................................   $  51,700      $  22,883
     Receivables, net.............................................................     102,478        127,134
     Inventories..................................................................      41,429         41,560
     Deferred income taxes........................................................      11,264         11,091
     Other current assets.........................................................       2,153          4,078
                                                                                     ---------      ---------
          Total current assets....................................................     209,024        206,746
Property, plant and equipment, net................................................     239,819        241,710
Other assets      ................................................................      36,294         35,413
                                                                                     ---------      ---------
          Total assets............................................................   $ 485,137      $ 483,869
                                                                                     =========      =========


                        LIABILITIES AND EQUITY (DEFICIT)

Current Liabilities:

     Accounts payable.............................................................   $  53,772      $   53,563
     Accrued liabilities..........................................................      74,205          73,839
     Income taxes payable.........................................................       5,500           8,226
     Current portion of long-term debt............................................      17,392          17,392
                                                                                     ---------      ----------
          Total current liabilities...............................................     150,869         153,020
Long-term debt....................................................................     217,217         208,615
Other liabilities.................................................................     198,232         200,351
                                                                                     ---------      ----------
          Total liabilities.......................................................     566,318         561,986
                                                                                     ---------      ----------
Minority interest.................................................................      38,572          41,246
                                                                                     ---------      ----------
Equity (deficit):
     Preferred Stock, $.01 par value; authorized:
      10,000,000 shares; none issued or outstanding...............................         --             --
     Common Stock, $.01 par value; authorized:
      100,000,000 shares, issued 8,009,601
      and 12,548,099 shares at December 31, 1996 and
      June 30, 1997, respectively.................................................          80             125
     Class B Convertible Common Stock, $.01 par value;
      authorized 40,000,000 shares; issued and outstanding:
      14,261,467 and 9,768,421 shares at December 31, 1996 and
      June 30, 1997, respectively.................................................         143              98
     Capital deficit..............................................................    (185,215)       (184,434)
     Foreign currency translation adjustments.....................................      (1,435)         (1,478)
     Retained earnings ...........................................................      66,797          93,609
     Treasury stock, at cost:  6,325 shares at December 31, 1996
      and 1,362,040 shares at June 30, 1997, respectively.........................        (123)        (27,283)
                                                                                     ---------      ----------
          Total equity (deficit)..................................................    (119,753)       (119,363)
                                                                                     ---------      ----------
          Total liabilities and equity (deficit)..................................   $ 485,137      $  483,869
                                                                                     =========      ==========
</TABLE>

      See the accompanying notes to the consolidated financial statements.



                                      -2-

<PAGE>
<PAGE>



                         THE GENERAL CHEMICAL GROUP INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (IN THOUSANDS)
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                                                     SIX MONTHS ENDED
                                                                                          JUNE 30,
                                                                                    --------------------
                                                                                    1996           1997
                                                                                    ----           ----
<S>                                                                                <C>           <C>     
Cash flows from operating activities:
   Net income ................................................................     $ 16,358      $ 28,972
   Adjustments to reconcile net income to net cash
    provided by operating activities:
     Depreciation and amortization.............................................      15,151        16,004
     Net loss on disposition of long-term assets...............................         540           372
     Unrealized exchange loss..................................................          11           730
     Restricted unit plan costs................................................      10,530           684
     (Increase) in receivables.................................................     (22,545)      (24,811)
     (Increase) in inventories.................................................      (1,534)         (272)
     (Decrease) in accounts payable............................................          (9)         (182)
     (Decrease) in accrued liabilities.........................................      (5,345)         (243)
     Increase in income taxes payable..........................................          57         2,688
     (Increase) decrease in other assets and liabilities, net..................      (1,579)        1,086
     Increase in minority interest.............................................       8,388         2,674
                                                                                   --------      --------
        Net cash provided by operating activities..............................      20,023        27,702
                                                                                   --------      --------
Cash flows from investing activities:
      Capital expenditures.....................................................     (22,377)      (18,407)
      Repayment of related party loans ........................................      14,000           --
      Proceeds from sales or disposals of long-term assets....................          --             10
                                                                                   --------      --------
        Net cash used for investing activities................................       (8,377)      (18,397)
                                                                                   --------      --------
Cash flows from financing activities:
      Net proceeds from initial public offering................................      40,600           --
      Proceeds from long-term debt.............................................      20,000           --
      Repayment of long-term debt..............................................     (63,191)       (8,696)
      Payments to acquire treasury stock.......................................         --        (27,160)
      Dividends................................................................         --         (2,225)
                                                                                   --------      --------
        Net cash used for financing activities.................................      (2,591)      (38,081)
                                                                                   --------      --------
Effect of exchange rate changes on cash........................................         (43)          (41)
                                                                                   --------      --------
Increase (decrease) in cash and cash equivalents..............................        9,012       (28,817)
Cash and cash equivalents at beginning of period...............................      19,025        51,700
                                                                                   --------      --------
Cash and cash equivalents at end of period.....................................    $ 28,037      $ 22,883
                                                                                   ========      ========

Supplemental information:

      Cash paid for income taxes...............................................    $ 10,604      $ 16,739
                                                                                   ========      ========

      Cash paid for interest...................................................    $ 11,977      $ 10,053
                                                                                   ========      ========
</TABLE>


      See the accompanying notes to the consolidated financial statements.


                                      -3-

<PAGE>
<PAGE>




                         THE GENERAL CHEMICAL GROUP INC.
                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

                FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 1997
                             (DOLLARS IN THOUSANDS)
                                   (UNAUDITED)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BASIS OF PRESENTATION

        The accompanying unaudited consolidated financial statements include the
accounts of The General Chemical Group Inc. and its subsidiaries (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, 1997 are not necessarily indicative of
the results that may be expected for the year ending December 31, 1997. 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, 1996.

         The Financial Accounting Standards Board issued Statement of Accounting
Standards No. 128, "Earnings Per Share" ("FAS 128"). The Company is required to
adopt FAS 128 for both interim and annual periods ending after December 15,
1997. FAS 128 requires the Company to present Basic Earnings Per Share which
excludes dilution and Diluted Earnings Per Share which includes potential
dilution. The Company believes that the adoption of FAS 128 will not have a
material effect on the Company's earnings per share calculations.

NOTE 2 - RELATED PARTY TRANSACTIONS

Management Agreement

         The Company is party to a Management Agreement with Latona Associates
Inc. (a management and advisory company which is controlled by a stockholder of
the Company). Pursuant to the agreement, the Company was charged $2,812 and
$2,920 for the six months ended June 30, 1996 and 1997, respectively, for
corporate supervisory and administrative services and strategic advice and
guidance. The Management Agreement expires on December 31, 2004.

NOTE 3 - ADDITIONAL FINANCIAL INFORMATION

         The components of inventories were as follows:

<TABLE>
<CAPTION>
                                        DECEMBER 31,        JUNE 30,
                                           1996              1997
                                           ----              ----
                                                          (unaudited)

<S>                                       <C>               <C>    
     Raw materials...................     $11,022           $ 9,148
     Work in process.................       4,900             7,287
     Finished products...............      17,403            16,312
     Supplies and containers ........       8,104             8,813
                                          -------           -------
                                          $41,429           $41,560
                                          =======           =======
</TABLE>



                                      -4-

<PAGE>
<PAGE>



                         THE GENERAL CHEMICAL GROUP INC.
          NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

                FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 1997
                             (DOLLARS IN THOUSANDS)
                                   (UNAUDITED)

NOTE 4 - LONG-TERM DEBT

         Long-term debt consists of the following:

<TABLE>
<CAPTION>
                                                                                     DECEMBER 31,      JUNE 30,
                                                                      MATURITIES         1996            1997
                                                                                         ----            ----
                                                                                                      (UNAUDITED)
<S>                                                                    <C>              <C>             <C>     
         GCC Debt:
            Bank Term Loan - floating rate..........................   1997-2001        $ 82,609        $ 73,913
            Senior Subordinated Notes - 9.25%.......................     2003            100,000         100,000
            Canada Senior Notes - 9.09%.............................     1999             52,000          52,094
                                                                                        --------        --------
            Total Debt..............................................                     234,609         226,007
            Less:  Current Portion..................................                      17,392          17,392
                                                                                        --------        --------
            Net Long-Term Debt......................................                    $217,217        $208,615
                                                                                        ========        ========
</TABLE>

         Aggregate maturities of long-term debt at December 31, 1996 for each of
the years in the five year period ending December 31, 2001 are $17,392, $17,392,
$69,392, $17,392 and $13,041, respectively.

NOTE 5 - DIVIDENDS

         On June 5, 1997, the Company's Board of Directors declared a quarterly
cash dividend of $.05 per share, payable July 3, 1997, to shareholders of record
on June 18, 1997.

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
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


                                      -5-

<PAGE>
<PAGE>



                         THE GENERAL CHEMICAL GROUP INC.
          NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

                FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 1997
                             (DOLLARS IN THOUSANDS)
                                   (UNAUDITED)

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 2,800 claimants,
with approximately 2,600 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 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 18, 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.

         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 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


                                      -6-

<PAGE>
<PAGE>



                         THE GENERAL CHEMICAL GROUP INC.
          NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (CONCLUDED)

                FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 1997
                             (DOLLARS IN THOUSANDS)
                                   (UNAUDITED)

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.

NOTE 7 - CAPITAL STOCK

         During the second quarter of 1997, in connection with a sale of its
stock the Stonor Group Limited ("Stonor") converted all 4.4 million shares of
the Class B Common Stock into an identical number of shares of Common Stock.
The Class B Common Stock and Common Stock are substantially similar, except for
certain differences in voting power and restrictions on transfer described in
the Company's Annual Report on Form 10-K for the year ending December 31, 1996.

         On April 23, 1997 the Company purchased approximately 1.3 million
shares of Common Stock from Stonor, at a price of $20 per share, pursuant to a
previously announced stock repurchase program by the Company. The purchase was
funded from the Company's cash and cash equivalents balance.

NOTE 8 - ACQUISITIONS

         On May 23, 1997, the Company's wholly owned subsidiary, General
Chemical Corporation ("GCC"), entered into an agreement to acquire all of the
outstanding stock of Peridot Holdings, Inc., a leading manufacturer and supplier
of sulfuric acid and water treatment chemicals. This transaction closed on July
1, 1997. Funding for this transaction was provided with existing cash and
borrowings on GCC's revolving credit facility. The Company will account for this
acquisition using the purchase method.


                                      -7-

<PAGE>
<PAGE>



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

June 30, 1997 Compared with December 31, 1996

Financial Condition

          Cash and cash equivalents were $22.9 million at June 30, 1997 as
compared with $51.7 million at December 31, 1996. During the first six months of
1997 the Company generated cash flow from operating activities of $27.7 million,
used cash of $8.7 million for net repayment of long-term debt, used cash of
$18.4 million for capital expenditures and used cash of $27.2 million for the
acquisition of treasury stock.

          The Company had working capital of $53.7 million at June 30, 1997 as
compared with $58.2 million at December 31, 1996. This decrease in working
capital primarily reflects lower cash balances offset by higher accounts
receivable balances.

          On July 1, 1997, the previously-announced acquisition of Peridot
Holdings, Inc. by a subsidiary of the Company was closed. Funding for this
transaction was provided with existing cash and borrowings on a revolving credit
facility.

Results of Operations

         Net revenues for the three and six month periods ended June 30, 1997
increased 3 percent to $165.0 million and $314.5 million, respectively, from
$160.1 million and $304.7 million for the comparable periods in 1996. This
increase is due to higher sales in the Manufacturing Segment, partially offset
by lower sales in the Chemical Segment. The increase in the Manufacturing
Segment primarily reflects higher volumes. The decrease in the Chemical Segment
is due primarily to weaker pricing of soda ash.

         Gross profit for the three and six month periods ended June 30, 1997
increased 3 percent and 5 percent to $54.6 million and $99.8 million,
respectively, from $53.1 million and $94.6 million for the comparable prior year
periods.

         Gross profit as a percentage of sales was 33 percent for the three
month periods ended June 30, 1996 and 1997. Gross profit as a percentage of
sales for the six month period ended June 30, 1997 increased to 32 percent from
31 percent for the same period in 1996. This increase is primarily due to higher
volumes in the Manufacturing Segment.

         Selling, general and administrative expense as a percentage of net
revenues was 9 percent and 10 percent for the three and six month periods ended
June 30, 1997, respectively, versus 17 percent and 14 percent for the comparable
prior year periods. This decrease from prior year is primarily due to a one-time
charge recorded in 1996 primarily related to a new Restricted Unit Plan created
by the Company which replaced certain prior equity programs.

         Interest expense for the three and six month periods ended June 30,
1997 was $5.1 million and $10.4 million, which was $1.2 million and $2.4 million
lower, respectively, than the comparable prior year levels as a result of lower
outstanding debt balances.

         Interest income for the three and six month periods ended June 30, 1997
was $.6 million and $1.3 million, respectively, which approximated the prior
year levels.


                                      -8-

<PAGE>
<PAGE>



         The foreign currency transaction (gain)/loss for the three month
periods ended June 30, 1996 and 1997 was $(.1) million. The foreign currency
transaction (gain)/loss for the six month periods ended June 30, 1996 and 1997
were $(.1) million and $.5 million, respectively. These amounts are principally
due to the impact of exchange rate fluctuations on a U.S. dollar denominated
loan of the Company's Canadian subsidiary. The impact of these foreign currency
transaction gains on this loan is noncash.

         Minority interest for the three and six month periods ended June 30,
1997 was $6.1 million and $12.3 million, respectively, versus $8.3 million and
$14.8 million for the comparable periods in 1996. The decrease in both periods
reflect lower earnings of General Chemical (Soda Ash) Partners.

         Net income was $17.3 million and $29.0 million for the three and six
month periods ended June 30, 1997, respectively, versus $7.0 million and $16.4
million for the comparable periods in 1996, for the foregoing reasons.


                                      -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, 1997:

         Richmond Works July 26, 1993 Incident. On March 11, 1997, the
coordination judge dismissed the 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 18, 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 June 6, 1997, General Chemical Canada Ltd. ("GCCL"), a wholly owned
subsidiary of the Company, received a summons issued by the Ministry of the
Environment and Energy alleging that a release of ammoniated material into the
Detroit River from GCCL's Amherstburg, Ontario facility on August 22, 1995,
violated certain provisions of the Environmental Protection Act and Ontario
Water Resources Act. The maximum statutory penalties for the offenses alleged
are in excess of $100,000 and GCCL intends to defend itself vigorously in this
matter.

ITEM 5.  OTHER INFORMATION

         During the second quarter of 1997, in connection with a sale of its
stock the Stonor Group Limited ("Stonor") converted all 4.4 million shares of
the Class B Common Stock into an identical number of shares of Common Stock.
The Class B Common Stock and Common Stock are substantially similar, except for
certain differences in voting power and restrictions on transfer described in
the Company's Annual Report on Form 10-K for the year ending December 31, 1996.

         On April 23, 1997 the Company purchased approximately 1.3 million
shares of Common Stock from Stonor, at a price of $20 per share, pursuant to a
previously announced stock repurchase program by the Company. The purchase was
funded from the Company's cash and cash equivalents balance.


                                      -10-

<PAGE>
<PAGE>



ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

         a)  Exhibits:

             (11)  Computation of Earnings per Common and Common Equivalent
                   Share.

             (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.

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

Date    July 28, 1997       /s/ Richard R. Russell
     --------------------       --------------------------------------------
                                RICHARD R. RUSSELL
                                President and Chief Executive
                                 Officer (Principal Executive Officer) and
                                 Director

Date    July 28, 1997       /s/ Ralph M. Passino
     --------------------       --------------------------------------------
                                RALPH M. PASSINO
                                Vice President and Chief Financial Officer
                                (Principal Financial and Accounting Officer)


                                      -12-

<PAGE>
<PAGE>






                                  EXHIBIT INDEX
<TABLE>
<CAPTION>

EXHIBIT NO.                      DESCRIPTION                             PAGE
-----------                      -----------                             ----
<S>             <C>                                                       <C>
    11          Computation of Net Earnings per Common and Common         14
                Equivalent shares for the three and six months
                ended June 30, 1996 and 1997

    27          Financial Date Schedule (EDGAR filings only)              15
</TABLE>


                                -13-

<PAGE>