Combustion Engineering

Combustion Engineering Logo
  • 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

    Trust Fund Information

  • Amount in Trust: $1.43 billion

  • Year Created: 2006

History

Combustion Engineering (CE) was founded in 1912 when Grieve Grate Company and American Stoker Company merged. In 1920, the company built its first headquarters building in Lower Manhattan. The company's initial products were boilers and under feed stokers - fuel systems for boilers - and dryers.

In the 1930s, the company worked on improving steam engines for locomotives. Combustion Engineering partnered with the Superheater Company, and the two companies eventually merged. After the merger, the company worked on assemblies for power plants.

During World War II, Combustion Engineering built several asbestos-lined boilers for Liberty ships. After the war, the company began delving into other products including plastics, synthetic fibers and solvents.

As the company grew, so did its product list. Combustion Engineering manufactured everything from cement to protective seals until 1990 when Asea Brown Boveri (ABB Group), one of the world’s largest electrical engineering companies, assumed control of CE's operations. By then, Combustion Engineering had already discontinued its use of asbestos.

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Litigation & Special Lawsuits

At the end of 2001, ABB increased the amount to cover future asbestos-related claims against Combustion Engineering from $470 million to $940 million. At that time, the company intensified its efforts to settle valid claims and dispute any that appeared invalid.

Combustion Engineering had 111,000 legal claims pending in November, 2002. By October 2004, ABB had reduced the number to 94,000. Many of the claims were the result of asbestos use as an insulation material inside welded boilers.

ABB came close to collapsing under the weight of the asbestos and mesothelioma lawsuits against Combustion Engineering in the early 2000s. Instead, ABB and Combustion Engineering agreed on a pre-packaged Chapter 11 bankruptcy reorganization plan with representatives of CE’s asbestos plaintiffs in 2003.

After three years in bankruptcy court, the reorganization plan took effect April 1, 2006. The plan established a trust to help settle any pending and future asbestos claims. Since 1990, ABB has paid more than $900 million to settle thousands of asbestos claims.

Industries, Occupations and Products

Combustion Engineering manufactured many asbestos products for use in a number of different industries, but the U.S. Navy was a major buyer of the company’s boilers and boiler products. Other industries that purchased products from CE included aerospace, construction, foundry, insulation, iron/steel, longshore, maritime, petrochemicals, railroad and textile industries.

Combustion Engineering manufactured boilers, cement, insulation, adhesives and coatings with asbestos.

The company produced more than two dozen specific asbestos-laden  items, including:

  • A-1199 Insulating Cement
  • Asbestos Ropes
  • Block Stick
  • Boilers
  • Buck Stay Cement A1360
  • Calcrete 30 Insulating Cement
  • Casing Cement
  • Castablock Insulating Cement
  • Expansion Joint Material
  • Fibrous Adhesive
  • Griptex Mineral Wool Block
  • Gunisul
  • Hilite Insulating Cement
  • Hy-Temp. Flexible Cement
  • Kaiser Hard Top Insulating Cement
  • Kaiser M. Block
  • Kaiser Plastic Insulating Cement
  • Lite Wate 22
  • Lite Wate 50
  • MHD Finishing Cement
  • Permaseal Weathercoating
  • Pyroscat Fireproofing Cement
  • SDK 50 Cement
  • Stic Tite Insulating Cement
  • Stirrup Cement
  • Super 711 Insulating Cement
  • Super Finish Insulating Cement
  • Super Finish Stick-Tite Ins. Cement
  • Super Stick-Tite Ins. Cement
  • Utility Thermal Finish Cement
  • WeatherKote Protective Air-Check
  • WeatherKote Protective Coating
  • WeatherKote Protective Duriseal
  • WeatherKote Protective Thermal Coat

Anyone  who worked with these products should be alerted to their dangers because thousands  of workers who were exposed to the asbestos in these products developed  asbestos-related illnesses. Shipyard workers, U.S. Navy veterans, engineers,  plant workers and construction workers were likely at the highest risk for  asbestos exposure from Combustion Engineering products.

Combustion Engineering Trust

The Combustion Engineering Asbestos PI Trust was created to handle all Asbestos PI Trust claims. Many of these claims were filed by those who had been affected by mesothelioma or another asbestos-related disease. The trust’s funding is strictly for the settlement of asbestos claims. The amount of funding in the trust is estimated at $1.43 billion.

In addition to setting up a trust, ABB provided enhanced payment for claimants in the form of company stock and cash. The cash payments were made in installments from 2004 to 2009. These cash payments were estimated at $350 million.

Additional Resources

  1. ABB. (2003). ABB and Combustion Engineering reach asbestos agreement. Retrieved from http://www.abb.com/cawp/seitp202/0780d60a84053cc9c1256cb1001ecaf5.aspx
  2. Combustion Engineering 524(g) Asbestos PI Trust Homepage. (n.d.) Retrieved from http://www.cetrust.org/
  3. In Re: Combustion Engineering, Inc., 03-CV-00751 (n.d.) Opinion of the court. Retrieved July 6, 2012. from http://www.ca3.uscourts.gov/opinarch/033392p.pdf
  4. Langley, A. (2002). ABB proposes a settlement for all asbestos lawsuits. Retrieved from http://www.nytimes.com/2002/11/02/business/international-business-abb-proposes-a-settlement-for-all-asbestos-lawsuits.html
  5. Rose, T. (2005). Swiss firm settles U.S. asbestos lawsuits. Retrieved from http://articles.sun-sentinel.com/2005-12-21/business/0512200769_1_abb-asbestos-combustion-engineering
  6. Windsor Historical Society of Connecticut. (2011). Combustion Engineering, Inc. collection. Retrieved from http://windsorhistoricalsociety.org/fa_combustion.html

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