Combustion Engineering
Combustion Engineering manufactured and distributed boilers, cement, insulation, adhesives and coatings with asbestos, which later led to thousands of asbestos lawsuits. The company filed for bankruptcy and established a trust fund with $1.43 billion to compensate future claimants.
Written by D. Carl Money | Edited by Amy Edel | Last Update: September 23, 2025
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Founded:1912 -
Years Operated:1912 - 1990 -
Headquarters:Stamford, Connecticut -
Business:Engineering, fossil fuel and nuclear power -
Asbestos Trust:Yes -
Bankruptcy Status:Filed in 2002 and reorganized in 2006
Combustion Engineering’s History With Asbestos
Combustion Engineering exposed workers and others to asbestos through its products and manufacturing processes. During World War II, the company built boilers lined with asbestos for Liberty ships. The use of asbestos continued in its steam systems and power plant assemblies into the mid-20th century. These products contained asbestos materials now known to pose serious health risks like mesothelioma.
The company began in 1912 as a developer of fossil and nuclear steam power systems in the United States. It built its first headquarters building in lower Manhattan in 1920. Early products included boilers, underfeed stokers, which are fuel systems for boilers, and dryers. In the 1930s, Combustion Engineering worked to improve steam engines for locomotives. After merging with Superheater Company, the company expanded its manufacturing to power plant assemblies.
After World War II, the company broadened its product line to include plastics, synthetic fibers, solvents, cement and protective seals. By 1990 Combustion Engineering had stopped using asbestos. That same year, Asea Brown Boveri, or ABB Group, took control of its operations.
Combustion Engineering’s history reflects a long period of asbestos use tied closely to its core industrial products and manufacturing methods. The shift away from asbestos in 1990 marked a significant change coinciding with new corporate ownership, ending a major chapter in the company’s industrial practices.
Development of the Combustion Engineering Asbestos PI Trust
The Combustion Engineering Asbestos PI Trust manages asbestos-related claims using funds set aside during the company’s bankruptcy reorganization. ABB Group faced heavy financial pressure from Combustion Engineering’s asbestos liabilities and increased reserves for claims from $470 million to $940 million in 2001. Combustion Engineering filed for Chapter 11 bankruptcy on February 17, 2003, to address its financial and asbestos-related challenges.
The bankruptcy plan took effect in 2006 and created the Trust with $1.43 billion to pay current and future claims. The Trust started with a 25% payment rate, higher than most asbestos trusts. ABB also contributed about $350 million in cash and stock payments from 2004 through 2009 to support claimants.
As of January 2024, the Trust reports it increased its payment percentage from 18.5% to 20% and provides supplemental payments to eligible claimants. In 2024, it paid $29 million on 3,928 Category A claims and $5.7 million on 9,422 Category B claims. Since inception, the Trust has received 582,600 claims and paid 261,569, while rejecting or deferring nearly 300,000 claims because of deficiencies or invalidity.
The Trust also manages a special reserve fund, established during the bankruptcy, that covers certain administrative expenses and creditor claims. In 2023, the Trust received about $8.6 million from this reserve. If no further claims arise within 2 years, an additional $500,000 will transfer to the Trust. The Trust files annual audited financial reports and updates the court and public to maintain transparency.
Gain access to trust funds, grants and other forms of compensation for you or your loved ones.
Get Help NowAsbestos Litigation Involving Combustion Engineering
Combustion Engineering used asbestos insulation in boilers before the 1980s, exposing workers to dangerous asbestos fibers. From 1990 to 2001, the company settled 204,326 asbestos cases and paid about $865 million. As of late 2002, 111,000 asbestos lawsuits remained unresolved. These claims drove the company to file for bankruptcy in 2003.
One notable mesothelioma lawsuit was a wrongful death case the widow of a pipefitter filed. Kenneth Wayne Jackson worked at a Combustion Engineering plant in Chattanooga, Tennessee, from 1952 to 1986. He later developed mesothelioma and died from the disease. His widow filed suit against several asbestos manufacturers including Combustion Engineering. Before trial, all but North Brothers settled. In 2009, a Tennessee jury awarded the Jackson estate $1.4 million.
This litigation history highlight the serious health conditions asbestos exposure caused like mesothelioma and led to extensive legal accountability for companies like Combustion Engineering. Courts examined exposure evidence thoroughly to determine liability in these cases.
Combustion Engineering’s Asbestos Products
Combustion Engineering produced a large assortment of industrial parts and building materials that included asbestos and other substances now recognized as hazardous. Their products became widespread in factories, shipyards and other heavy industries across the United States.
Products That Contained Asbestos
Some of the asbestos used in their boilers was amosite asbestos, which is especially dangerous. Although these asbestos products were distributed to many different industries, the U.S. Navy was one of Combustion Engineering’s major customers. The Navy often purchased their boilers and insulation materials for their ships because of their resistance to high heat and fire.
Combustion Engineering Occupations at Risk
Many types of workers faced risk of exposure to Combustion Engineering’s asbestos products. Workers in these jobs often operated, installed or repaired equipment and materials that contained asbestos.
Higher Risk Jobs
- Boiler workers
- Chemical plant workers
- Construction workers
- Engineers
- Factory workers
- Insulators
- Lumberyard workers
- Metal workers
- Pipefitters
- Power plant workers
- Shipyard workers
- Veterans of the U.S. armed forces
Those who spent time in shipyards, factories, power plants and construction sites were especially at risk, as these settings commonly used Combustion Engineering products. Thousands of workers who came into contact with asbestos in these products later developed serious illnesses, many of which are directly related to asbestos exposure.
According to a 2022 European Commission report, more than 70,000 workers died in 2019 from diseases linked to past asbestos exposure. Anyone who worked with or around these materials should be aware of the dangers associated with past exposure.
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