Prevented $12 million in Business Interruption
Explosion in Saturator Converting Line
Case Study
Explosion
Services Provided
Project Management
BI-Mitigation
Repair vs. Replace
The Situation
An explosion occurred within a curing station on a production line manufacturing 90–100” foam board panels, halting a high-volume, continuous production process. The curing station used a gas-fired steam dryer, which was critical to maintaining production flow. With the OEM no longer in business and documentation unavailable, replacement of the entire production line was projected to take up to 16 months and cost $5 million.BI exposure was estimated at approximately $1.6 million per month, underscoring the urgency of restoring safe and reliable production capacity.
Equipment Impacted
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Curing Station
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Gas-Fired Steam Dryer
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Production Line Machinery
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Product Conveyance
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Handling Systems
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Process Equipment
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Mechanical / Electrical Components
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Warehouse Support Equipment
Value-Driven Solutions
Damage Assessment and Production Feasibility Planning
A comprehensive evaluation of the warehouse, production line, curing station, and surrounding workspace was completed within seven days to determine salvageable components and assess restoration feasibility. Engineering analysis focused on identifying safe rebuild opportunities while maintaining LKQ production capability.
Alternative Dryer Enhancement Strategy
A redesigned curing solution was developed by integrating a used Hot Air Flotation Drying System to replace the unsafe gas-fired steam dryer. The alternative system improved operational safety, simplified maintenance requirements, and maintained required production quality standards.
Repair Coordination and Project Management
The restoration process was coordinated by integrating multiple mechanics, engineers, and specialty crews to rebuild salvageable equipment, replace damaged systems, and ensure communication alignment between stakeholders, vendors, and adjusting teams.
The Results
Accelerated Production Restoration
Full production capacity was restored within six months, significantly reducing downtime compared to the projected 16-month replacement timeline.
Millions of Dollars in BI Avoided
The alternative rebuild strategy reduced production downtime exposure, preventing nearly $12 million in projected business interruption costs while lowering total rebuild and replacement expenses to over $3 million.
Streamlined Multi-Party Project Execution
Solutions involved coordinating oversight and communication among repair teams, engineers, the insured, and adjusting representatives to ensure efficient project execution and minimize delays during restoration.
Real Claims, Real Results