8-K

                     SECURITIES AND EXCHANGE COMMISSION
                          WASHINGTON, D.C.  20549


                                  FORM 8-K


             CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF
                    THE SECURITIES EXCHANGE ACT OF 1934




      Date of Report (date of earliest event reported):  July 5, 1999




                         MAXXAM GROUP HOLDINGS INC.
           (Exact name of Registrant as Specified in its Charter)



                                  DELAWARE
               (State or other jurisdiction of incorporation)




                                 333-18723
                          (Commission File Number)



                                 76-0518669
                  (I.R.S. Employer Identification Number)




    5847 SAN FELIPE, SUITE 2600                        77057
           HOUSTON, TEXAS                            (Zip Code)
       (Address of Principal
         Executive Offices)



    Registrant's telephone number, including area code:  (713) 975-7600


ITEM 5.  OTHER EVENTS

          Attached hereto as Exhibits 99.1 and 99.2 are press statements
issued by Kaiser Aluminum & Chemical Corporation ("KACC") in connection
with an explosion at its Grammercy, Louisiana alumina refinery on July 5,
1999.  Kaiser Aluminum Corporation, in which the Registrant owns a 35.4%
interest, is the parent of KACC.


                                 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 hereunto duly authorized.

                                         MAXXAM GROUP HOLDINGS INC.
                                                (Registrant)


Date:  July 9, 1999               By:       /s/ Paul N. Schwartz
                                              Paul N. Schwartz
                                    Vice President and Chief Financial Officer

EX-99

                                                               Exhibit 99.1

Contact:  Scott Lamb  (713) 267-3826


                       KAISER ALUMINUM PRESS ADVISORY
                                JULY 5, 1999


     Kaiser Aluminum's Gramercy, Louisiana, alumina refinery was
extensively damaged by an explosion at approximately 5:15 this morning.
The cause of the explosion is under investigation.  The company has
notified appropriate governmental agencies.  Approximately 20 employees
were injured in the blast and were transported to area hospitals.

     As a result of the explosion, the company expects that production at
the plant will be curtailed for several months.

     The Gramercy facility has an annual rated production capacity of about
1 million metric tons per year of alumina.  Kaiser Aluminum's total annual
production of alumina is about 3 million metric tons.

EX-99

                                                               Exhibit 99.2
Contact:  Scott Lamb
Telephone: 225-231-5147  today only or
(713) 267-3826                                         July 7, 1999

 KAISER ALUMINUM NOTIFYING CUSTOMERS AND SUPPLIERS OF GRAMERCY, LOUISIANA,
 PLANT OF FORCE MAJEURE;  COMPANY ASSISTING CUSTOMERS WITH ALTERNATE SUPPLY
                                ARRANGEMENTS

     HOUSTON, Texas, July 7, 1999 -- Kaiser Aluminum & Chemical
Corporation, the operating subsidiary of Kaiser Aluminum Corporation
(NYSE:KLU), said today that it is notifying customers and suppliers of its
Gramercy, Louisiana, alumina refinery that it is declaring force majeure as
a result of a July 5 explosion that has rendered the plant unable to
operate.   At the same time, the company emphasized that it is working with
its customers to assist them in obtaining alumina from alternate sources.

     As previously reported, the company said production at the plant is
expected to be curtailed for several months as a result of an explosion in
the digester area of the plant.  At the time of the incident, equipment in
that area was being operated by employees with extensive experience.  The
cause of the explosion is under investigation.  The company has broad
insurance coverage in respect of the Gramercy facility and its other
operations.

     Approximately 24 employees were injured in the blast and were
transported to area hospitals.  All but six were treated for minor injuries
and released.  Of the six employees remaining in the hospital, the company
has been informed that two are in critical but stable condition with burn-
related injuries.

     "Obviously, this is a very sad and unfortunate event," said Ray
Milchovich, president and chief operating officer of Kaiser Aluminum.  "We
are taking steps to identify the cause and would hope to learn how to
prevent such an incident from ever occurring again."

     Kaiser Aluminum is a leading producer of alumina, primary aluminum,
and fabricated aluminum products.  MAXXAM Inc. (ASE:MXM) directly and
indirectly holds approximately 63 percent of  Kaiser.

Company press releases may contain statements that constitute "forward-
looking statements" within the meaning of the Private Securities Litigation
Reform Act of 1995.  The company cautions that any such forward-looking
statements are not guarantees of future performance and involve significant
risks and uncertainties, and that actual results may vary materially from
those expressed or implied in the forward-looking statements as a result of
various factors.
                                   F-814