<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


                    GENERAL CHEMICAL INDUSTRIAL PRODUCTS INC.
             (Exact name of Registrant as specified in its charter)


                Delaware                                22-3649282
     (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
                                       ---    ---

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






<PAGE>



                    GENERAL CHEMICAL INDUSTRIAL PRODUCTS 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............................     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


                    GENERAL CHEMICAL INDUSTRIAL PRODUCTS 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         12,008
Restructuring  charge ..........................................             -            -                 -          1,721
                                                                       -------     --------          --------      ---------
Operating profit ...............................................         5,327        3,783            14,524          4,832
Interest expense................................................         3,977        3,817            11,750         11,865
Gain on sale of assets..........................................         7,699            -             7,699              -
Interest income.................................................           289          138               833            558
Other (income) expense, net.....................................           (48)         303                24            470
                                                                       -------     --------          --------      ---------
Income (loss) before income taxes and minority interest.........         9,386         (199)           11,282         (6,945)
Minority interest...............................................         4,096        1,765             9,522          4,083
                                                                       -------     --------          --------      ---------
Income (loss) before income taxes...............................         5,290       (1,964)            1,760        (11,028)
Income tax provision (benefit) .................................         2,027           21              (432)           154
                                                                       -------     --------          --------      ---------
           Net income (loss)....................................       $ 3,263     $ (1,985)          $ 2,192      $ (11,182)
                                                                       =======     =========          =======      =========
</TABLE>






        See the accompanying notes to consolidated financial statements.



                                      -1-




<PAGE>


                    GENERAL CHEMICAL INDUSTRIAL PRODUCTS INC.

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


                                     ASSETS

<TABLE>
<CAPTION>
                                                                                        December 31,    September 30,
                                                                                            2000             2001
                                                                                           ----             ----
                                                                                                         (unaudited)
<S>                                                                                     <C>             <C>
Current assets:
       Cash and cash equivalents................................................        $  18,419       $  22,073
       Receivables, net.........................................................           58,872          46,508
       Inventories..............................................................           21,707          20,969
       Deferred income taxes....................................................            8,455           7,999
       Other current assets.....................................................           13,792           7,144
                                                                                        ---------       ---------
          Total current assets..................................................          121,245         104,693
Property, plant and equipment, net..............................................          108,883         102,576
Other assets....................................................................           18,424          19,343
                                                                                        ---------       ---------
          Total assets..........................................................        $ 248,552       $ 226,612
                                                                                        =========       =========

                        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...............................................................           81,962          79,826
                                                                                        ---------       ---------
          Total liabilities.....................................................          305,968         284,982
Minority interest...............................................................           41,446          38,931
Equity (Deficit):
      Common Stock, $.01 par value; authorized,
        issued and outstanding:  1,000 shares at
        December 31, 2000 and September 30, 2001, respectively..................               --              --
      Capital deficit...........................................................          (54,057)        (43,698)
      Accumulated other comprehensive income (loss).............................           (1,365)          1,019
      Accumulated deficit.......................................................          (43,440)        (54,622)
                                                                                        ----------      ----------
      Total equity (deficit)....................................................          (98,862)        (97,301)
                                                                                        ---------       ---------
          Total liabilities and equity (deficit)................................        $ 248,552       $ 226,612
                                                                                        =========       =========
</TABLE>


        See the accompanying notes to consolidated financial statements.



                                      -2-




<PAGE>


                    GENERAL CHEMICAL INDUSTRIAL PRODUCTS 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) ....................................................     $  2,192      $ (11,182)
       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)        12,364
         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.......................        8,490            260
                                                                                  --------      ---------

Cash flows from investing activities:
       Capital expenditures..................................................      (12,125)        (7,183)
       Disposals 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:
       Capital contribution..................................................           --         10,000
       Other financing activities............................................         (165)           359
                                                                                  --------      ---------
             Net cash (used in) provided by financing activities.............         (165)        10,359
                                                                                  --------      ---------
Increase in cash and cash equivalents........................................        4,661          3,654
Cash and cash equivalents at beginning of period.............................       24,688         18,419
                                                                                  --------      ---------
Cash and cash equivalents at end of period...................................     $ 29,349      $  22,073
                                                                                  ========      =========

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>

                    GENERAL CHEMICAL INDUSTRIAL PRODUCTS 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

         General Chemical Industrial Products Inc. ("GCIP" 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 GCIP 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>


                    GENERAL CHEMICAL INDUSTRIAL PRODUCTS 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 $1,780 and ($8,798)
respectively.

Note 3 - 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 4 - 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 for revised actuarial estimates of
employee termination benefits.

Note 5 - Capital Contribution

         On May 14, 2001, The General Chemical Group Inc. ("GCG") raised $10.0
million of equity through a rights offering in which the shareholders of GCG
received rights to subscribe for and purchase newly issued shares of GCG's
common stock. The proceeds to GCG were contributed to the Company and will be
used to pay costs related to the idling of the Company's synthetic soda ash
productions capacity in Amherstburg, Ontario, Canada and for general corporate
purposes.



                                      -5-




<PAGE>


                    GENERAL CHEMICAL INDUSTRIAL PRODUCTS INC.

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

Note 6 - 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.

 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 7 - 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    $    7,358
     Foreign  .................................          82,744         78,154           (3,317)       (2,526)
     Elimination ..............................         (23,824)       (33,449)              --            --
                                                    ------------       --------      ----------    ----------
                                                    $   220,224       $217,896       $   14,524    $    4,832
                                                    ===========       ========       ==========    ==========
</TABLE>

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



                                      -6-




<PAGE>

                    GENERAL CHEMICAL INDUSTRIAL PRODUCTS INC.

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

Note 8 - 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...................             2,893         (4,230)           (6,195)       (13,199)
                                                      -----------    -----------        -----------    -----------
                                                      $     5,290    $    (1,964)       $    1,760     $  (11,028)
                                                      ===========    ===========        ===========    ===========
</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 $22.1 million at September 30, 2001
compared with $18.4 million at December 31, 2000. During the first nine months
of 2001, the Company provided cash flow from operating activities of $.3
million, used cash of $7.0 million for capital expenditures and provided cash
flow from financing activities of $10.4 million.

         The Company had working capital of $46.4 million at September 30, 2001
as compared with $46.6 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 5.5 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




                                      -10-




<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 INDUSTRIAL PRODUCTS INC.
                                                 Registrant



Date   November 14, 2001      /s/ De Lyle W. Bloomquist
       --------------------       ----------------------------------------------
                                  De Lyle W. Bloomquist
                                  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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