On Friday, Honeywell International Inc (NASDAQ:HON) said that it would pay USD 1.3 billion to end asbestos-related claims emanating from its former unit. This is likely to help the company in reducing its environmental liabilities.

As part of a deal with North American Refractories Asbestos Personal Injury Settlement Trust, the settlement is going to help the company eliminate its funding obligations to the trust.

Also, the company said the one-time, lump-sum payment would have limited obligations to the North American Refractories Asbestos Personal Injury Settlement Trust following the completion of the deal.

In 2002, Honeywell’s former unit, NARCO (North American Refractories Company ), had filed for bankruptcy after facing lawsuits over asbestos-related illnesses. After that, the company established the compensation trust to resolve billions of dollars worth of asbestos-related claims.