C. Lewis & Company

Steel

Location: Annaba, Algeria


Scope of Engagement:

  • Measurement of business interruption loss resulting from an initial liquid steel explosion due to contact with water, and subsequent fire in the control room at one of the two steel melt shops at a major Algerian steel plant
Quantum:
  • In excess of US$60 million
Unique Aspects of Engagement:
  • Created a detailed business model, by process, in order to determine how the plant was affected as whole by the loss;
  • Identified and accounted for time lag between order book and P&L monthly sales prices as a result of rapid commodity price inflation;
  • Identified and accounted for savings generated by the Insured’s ability to continue to produce coke over and above the amount required during the loss period, and thus generate significant future savings due to coal price inflation during the loss period.