Owens-Illinois Inc. History of Asbestos Use
Owens-Illinois Inc. was a prominent manufacturer and supplier of asbestos insulation in the 1940s and 1950s. The company’s asbestos products exposed hundreds of thousands of people to the dangerous mineral.
The company was first founded in 1903 as Owens Bottle Machine Company. At first, it solely focused on manufacturing and supplying bottle-making machines. However, through acquisitions, the company soon ventured into glass bottle production, plastics and cardboard packaging.
Between 1909 and 1920, Owens Bottle Machine Company acquired more than 15 companies. During this time, the company changed its name to Owens Bottle Company to reflect the changes in product offerings.
In 1929, Owens Bottle Company and Illinois Glass Company merged to form the Owens-Illinois Glass Company, marking the largest merger in the glass industry at that time.
As the demands of the industry evolved, Owens-Illinois shifted its focus to insulation. In 1943, the company built a new plant to manufacture an insulation product containing asbestos, called “Kaylo.” It may have sold a small quantity of the insulation product in 1944. This was the company’s first venture into the insulation industry.
Owens-Illinois manufactured the majority of its asbestos-containing Kaylo insulation products between 1948 and 1958. The company used asbestos fibers in its insulation products, pipe coverings and other products. The asbestos-containing products were then sold to Owens-Corning Fiberglas, which continued to produce the materials.
After ending its asbestos use in 1958, Owens-Illinois Glass Company changed its name to Owens-Illinois Inc. and began to aggressively pursue international expansion. The company’s final name change would come in 2006 when it officially adopted the O-I abbreviation.
During the 1960s and early 1970s, Owens-Illinois continued to grow. However, the company’s brief use of asbestos led to thousands of people being exposed.
In 1977, the company faced its first asbestos-related lawsuit. The lawsuits continued to mount, and the company declared bankruptcy in 2020. In 2022, it emerged from bankruptcy and created an asbestos trust fund to handle its asbestos claims.
Today, Owens-Illinois employs more than 25,000 people. It is the largest glass bottle manufacturer in the world.
Resources for Mesothelioma Patients
Owens-Illinois Personal Injury Asbestos Trust Fund
As of 2022, the Owens-Illinois Asbestos Personal Injury Trust fund was created to handle all asbestos claims against Owens-Illinois. The company allocated $610 million to the trust to pay out all present and future asbestos claims.
To resolve its asbestos litigation issues, Owens-Illinois created a subsidiary company, Paddock Enterprises LLC. It then transferred its asbestos liabilities to this new company. The new company then declared bankruptcy. This strategy is called the “Texas Two-Step.” Legal scholars warn that it may threaten the integrity of the bankruptcy system. Although only its subsidiary, Paddock Enterprises, declared bankruptcy, the resolution shields Owens-Illinois from asbestos litigation.
People exposed to asbestos through Owens-Illinois products may be able to receive compensation through the Owens-Illinois trust fund. All claims are subject to the payment percentage, which can change over time.
Most Recent Information From Owens-Illinois Asbestos Personal Injury Trust
The trust’s year-end 2024 report revealed, as of December 31, 2024:
- Over 3,050 Owens-Illinois Asbestos Personal Injury Trust claims were paid.
- Over 29,600 unliquidated personal injury claims were received by the trust.
- Approximately $51.8 million was paid to asbestos victims by the Owens-Illinois asbestos trust in unliquidated claim settlements.
- Over $2.847 million was reported in settled but unpaid claims.
- Approximately $540.5 million in total assets remain in the trust.
- The trust has received over 82,300 unliquidated claims since it was established.
Current Owens-Illinois Asbestos Personal Injury Trust Payment Percentage
The current payment percentage is 50% for the Owens-Illinois Asbestos Personal Injury Trust. At a payment percentage of 50%, the current payout on an Owens-Illinois Expedited Review claim for mesothelioma is $50,000.
Determining Review Process When Filing an Owens-Illinois Asbestos Personal Injury Trust Claim
An experienced asbestos lawyer will evaluate the injured party’s case to determine the appropriate review process when submitting an Owens-Illinois asbestos trust claim. A sample of Owens-Illinois claims filed between 2022 and 2024 indicated that approximately 80% of claims were filed under the Expedited Review (ER) process. Approximately 20% of Owens-Illinois claims were filed using the Individual Review (IR) process.
- Expedited Review Process: Owens-Illinois claims meeting all medical and exposure criteria established in the Trust Distribution Procedures should be submitted through the ER process for a faster evaluation. Qualified claims will receive the standard scheduled value payment based on the diagnosed disease level.
- Individual Review Process: Owens-Illinois claims submitted through the IR process undergo a detailed assessment of the claimant’s exposure, medical, and personal records to determine an individual liquidated value. IR filing is required for lung cancer cases, secondary exposure claims, or if a claim does not meet the standard trust criteria.
The trust is currently accepting claims to compensate asbestos victims with payments determined by factors such as age, diagnosis, exposure history and the law firm’s settlement history. If you or a loved one had exposure to Owens-Illinois products and believe you are entitled to compensation, learn how a mesothelioma lawyer can help.
Owens-Illinois Inc. Asbestos Products
Owens-Illinois established its first Kaylo asbestos insulation material plant in 1943. The company used asbestos in its thermal insulation products to increase heat-resistant properties, durability and strength.
The peak of Owens-Illinois asbestos use was between 1944 and 1958. In that time, the company sold roughly $40 million worth of asbestos products. It sold the Kaylo rights to Owens-Corning Fiberglas in 1958, which continued to produce Kaylo asbestos products until 1973.
From approximately 1943 to 1958, Owens-Illinois manufactured two popular asbestos products:
- Kaylo block insulation
- Kaylo pipe insulation
Tradespeople and workers who used these products or helped manufacture them may have been exposed to asbestos. Boilermakers, pipefitters and those who worked with insulating products may have been particularly at risk.
Owens-Illinois Inc. and Occupational Exposure
Anyone who worked around Owens-Illinois Kaylo insulation was at risk of occupational asbestos exposure. This included the company’s employees and professionals who installed and serviced the product in other industries.
The risk of developing an asbestos-related disease may increase with repeated exposure, which can occur at jobsites. Anyone employed by the company between 1943 and 1958 may have been exposed to the dangerous mineral in the workplace.
Other tradespeople who come in contact with asbestos-containing Kaylo products may have also experienced asbestos exposure. Today, exposure can occur when working in older homes, schools and buildings that may still contain Kaylo insulation.
Family members of Owens-Illinois workers may also be at risk of secondhand asbestos exposure. Secondary exposure happens when asbestos fibers get stuck to a worker’s hair or clothing. When they return home, household members may be exposed to the toxic fibers while handling or laundering clothing.
Anyone who performs “Do-It-Yourself” home repairs may also face asbestos exposure risks. This exposure may occur when removing, repairing or otherwise handling Owens-Illinois asbestos materials.
Asbestos Litigation Against Owens-Illinois Inc.
Owens-Illinois was first named in asbestos-related lawsuits in 1977. Over the next 20 years, the company settled around 210,000 asbestos-related complaints. Before filing for bankruptcy, Owens-Illinois estimated it was named a defendant in ongoing asbestos claims involving roughly 14,000 plaintiffs.
One case filed against Owens-Illinois in 2014 involved an insulator who used the company’s products and was later diagnosed with mesothelioma. The jury verdict awarded the worker approximately $4.5 million.
In 2018, Owens-Illinois owed $125 million in asbestos liabilities. That same year, the company’s asbestos-related payments were $105 million. In 2020, the company began bankruptcy proceedings to shield itself from asbestos litigation.
