Federal Mogul, parent company of the JW Roberts factory at Armley, is on the verge of settling a series of outstanding pension claims.
It is hoped these will allow the company to emerge from administration next year. Once that happens, campaigners believe their compensation claims can also be addressed.
The factory closed in the 1950s but left a legacy of asbestos-linked cancers among former workers, their families, and people living in the surrounding streets.
Families were offered hope of compensation through the inspirational struggle of one worker, June Hancock, who fell victim to mesothelioma, an incurable lung cancer.
Before her death in 1997 at 61 Mrs Hancock, who had lost her mother to the same disease, won a bitter legal battle for compensation against the then parent company, Turner & Newall.
Her victory opened the doors to claims from thousands of other victims including former Armley residents living as far away as Australia.
But faced with tens of millions of pounds in settlements in the United States, Turner & Newall's parent company, Federal Mogul, declared itself technically insolvent.
US business law allowed the company to carry on trading and making profits while freezing compensation payments.
Turner & Newall also declared itself insolvent, freezing payments.
In Britain, 270 cancer victims are owed money – 80 of them associated with J W Roberts. About 1,000 more claims are being processed.
Breakthrough
Now there is the possibility of a breakthrough. Federal Mogul is close to settling a series of outstanding pension claims, which could allow it to emerge from administration next year.
Once that has been achieved, campaigners believe their compensation claims can be addressed.
Leeds West MP John Battle has pursued the issue in Parliament and held meetings with UK-based administrators.
He said today: "My main concern is for the asbestos victims from Armley. They have been pushed to the side time and time again.
"The administrators, Kroll Buchler Phillips, are working hard to try to find a way of ensuring that the victims are not pushed to the back of the queue again.
"I had a meeting with them in September and I will be making sure that they make all efforts in the light of these new developments.
"If it means that the people who lost their pensions may get something, then the people affected by asbestos should as well.
"I am hopeful that we may be able to get something for them next year. These people cannot afford to continue waiting for years and years as these big businesses get involved in legal wrangles."
Welcomed
The latest development has also been welcomed by Mrs Hancock's family.
Her son, Russell, who is a trustee of a charity set up in her name and aimed at funding research into mesothelioma and providing other help for victims, said today: "Anything that helps us get nearer to seeing the compensation paid to those who have suffered is a positive step but there is still, clearly, a long way to go."
Federal Mogul said in a statement that it believed its pension plan "will be in the best interests of all creditors of the UK debtors and..will help Federal Mogul's ongoing progress to emerge from administration in the UK and bankruptcy in the US in 2005".
• TWO years ago, the Ridings Asbestos Support and Awareness Group was formed to give help and advice to victims of asbestos-linked cancers.
It moved into offices in Town Street, Armley, earlier this year when a picture of Mrs Hancock was unveiled by Mr Battle.
The office can be contacted on 0113 231 1010.
nigel.scott@ypn.co.uk