Combustion Engineering

Combustion Engineering’s History with Asbestos

Founded in 1912, Combustion Engineering was a leader in the development of fossil and nuclear steam supply power systems in the U.S.

In 1920, the company built its first headquarters building in lower Manhattan. The company’s initial products were boilers and underfeed stokers (fuel systems for boilers) and dryers.

In the 1930s, the company worked on improving steam engines for locomotives. After a merger with Superheater Company, it 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 making other products including plastics, synthetic fibers and solvents.

As the company grew, so did its product list. It manufactured everything from cement to protective seals. In 1990, Asea Brown Boveri (ABB Group), a large electrical engineering company, took control of Combustion Engineering’s operations. Combustion Engineering was no longer using asbestos at that point.

The company’s financial debt and lingering asbestos liability was inherited by ABB Group and nearly bankrupted the company in the early 2000s.

At the end of 2001, ABB increased the amount of funds set aside to handle future asbestos-related claims against Combustion Engineering, from $470 million to $940 million. It also ramped up its efforts to settle viable claims and dispute others.

Development of the Combustion Engineering Asbestos PI Trust

In an effort to handle the debt and manage pending and future asbestos claims, Combustion Engineering filed for Chapter 11 bankruptcy on Feb. 17, 2003.

ABB and Combustion Engineering consented to a Chapter 11 bankruptcy reorganization plan with representatives of Combustion Engineering’s asbestos plaintiffs in November 2003.

The reorganization plan took effect on March 1, 2006. The plan established the Combustion Engineering Asbestos PI Trust with $1.43 billion to help settle any pending and future asbestos claims.

The current payment percentage is 25%, which is significantly higher than the majority of other asbestos trusts.

ABB Group also provided enhanced payment for claimants using company stock and cash. The cash payments were made in installments from 2004 to 2009 and were estimated at $350 million.

Asbestos Litigation Involving Combustion Engineering

Between 1990 and 2001, Combustion Engineering settled 204,326 asbestos cases for $865 million.

In November 2002, before filing for bankruptcy, the company had 111,000 legal claims pending. Many of the claims were the result of asbestos use as an insulation material inside welded boilers built before the 1980s.

Combustion Engineering’s Asbestos Products

Some of the asbestos used to line boilers was amosite asbestos, which is highly carcinogenic.

These asbestos-containing products were used in a number of different industries, but the U.S. Navy was a major buyer of the company’s boilers and boiler products.

Combustion Engineering Occupations at Risk

Thousands of workers who were exposed to the asbestos in these products developed asbestos-related illnesses. Based on a 2022 report by the European Commission, over 70,000 workers died from past exposure to asbestos in 2019.

Anyone who worked with these products should be alerted to their dangers.

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