Expanding Knowledge Through Collaboration

2013 Introduction ...... 01 Member Companies & Directors & St . Louis Staff ...... 19 Annual Highlights ...... 02. . Designated Representatives . . . 12 . MTI Fellows ...... 19 MTI’s Vision ...... 10 Report of the AmeriTAC Chair . . . . 14 Technical Advisory Councils . . . . . 20 MTI’s Mission ...... 10. . Report of the AsiaTAC Chair . . . .15 . Financial Statements ...... 22 . Benefits of Membership ...... 10 Report of the EuroTAC Chair . . . .16 . Membership Dues Information . . . 25 . Report of the Chair – Executive Director’s Letter . . . . 17 . Board of Directors ...... 11 . Board of Directors ...... 18 . The Knowledge Resource for Materials Solutions

Why does MTI membership remain solid and grow despite the currently sluggish global economy? Because we continue to be the primary provider of knowledge and solutions for people who seek answers to material problems. Those who become members in our organization quickly see the value of their membership and stay with MTI for a long time.

The MTI menu for members includes . . . • Wealth of Knowledge • Networking • Problem Solving • Solutions

MTI is always adjusting and refocusing its strategy so we can continue meeting the needs of our members. Their needs are always changing in today’s rapid technology development. Knowledge transfer is in a continuous state of change.

That’s why we are always looking for better and faster solutions to the problems that we face. In many cases, the new normal today also requires us to solve issues with fewer resources than were available in the past and provide definitive answers according to a timescale that is measured in hours and days instead of weeks and months.

Collaboration is the key ingredient in our formula for success. Every individual member brings a dish of expertise from one or more area to the “pot luck” of tangible and digestible solutions. So why not make use of MTI’s instant access to a wide range of industry experts and its online problem solving opportunities? Annual Highlights

Changing of the Guard After three years leading MTI’s Board of Directors, Ed With the Board of Directors, Macki helped guide the Naylor’s term as Chair is coming to a close. Along with organization to grow and become truly global. He was Executive Director Jim Macki, he steps down from his named a Fellow in 2011 for his many achievements. More leadership role in October 2013. Naylor’s successor will be than anything else, Macki leaves MTI in a better state than announced after AmeriTAC 112 in Savannah, Georgia. it was when he began as Executive Director (+4 member companies). Eighteen years after he joined the MTI staff Unlike Macki who is officially retiring at the end of the (15 years as the Executive Director), Macki will be retiring year and planning trips that don’t involve microphones in December 2013. and PowerPoint presentations, Naylor plans to continue as a member of MTI’s BOD. John Aller will take over as MTI’s 8th Executive Director. Aller brings a unique experience to the No one will replace Naylor’s unique style of leadership. organization with his background working for producer An engineer with a passion for fishing, he reeled in staff and supplier companies. He has also started and owned and BOD members for a Strategic Planning Session in an international engineering software business and has 2010 and made several adjustments to keep MTI on the served as a consultant to the processing industries, teaching right course. During his three years as Chair, membership companies around the world how to apply Risk Based remained stable, and the organization weathered the latter Inspection (RBI) to aging plants. In addition, Aller is a half of a downturn in the global economy. former AmeriTAC Chair and MTI Board Member, giving him an insider’s perspective of the organization. Despite a hardnosed drive to get the job done, Naylor also showed a fisherman’s patience during his term, enabling his Along with a new Chairman of the Board (to be named fellow leaders to lead and allowing efforts to blossom. When in October 2013), Aller will lead MTI as it continues to it was time to pull together a team or wrap up a discussion, expand globally. Leadership will inherit an organization like any good engineer, he just took charge. that has remained stable through an economic downturn and expanded into Europe and Asia. MTI sits on a stockpile According to Naylor, the three–year commitment passed of technical information that staff are working to deploy by quickly, and the work load was never overburdening. via the web site and in eLearning training modules. Aller’s He called it a great opportunity to grow personally and background in software makes him ideal to help lead staff professionally. Although leadership isn’t for everyone, his in support of the Knowledge Management PDC and Project experience is proof that it can be a rewarding opportunity. Teams driving these changes. It’s truly a new world for MTI.

For others, the experience is so positive that it’s hard to say With these significant changes in staff and Board goodbye. When MTI hired Macki as its Associate Director leadership come different perspectives, new ideas and in 1995, the organization was 18 years old. By 1998, he had plenty of opportunities to help MTI deliver even been named Executive Director, succeeding Tom Gibbs, greater value to its member companies. who had succeeded Bert Krisher.

Left to Right: Ed Naylor, Jim Macki, John Aller

2 | The Knowledge Resource for Materials Solutions Members Migrate to New Web Site Forum Knowledge Management Building Member Resources MTI’s web site continued to evolve in 2013. In March, the Over the last 37 years, MTI has developed a virtual warehouse old online forum was mothballed, and members transitioned worth of technical data on materials engineering. Forty to a forum integrated into the new web site. The enhanced volumes of that information are searchable on the Granta forum provides members with new features, including web site. Reports and other valuable information are stored powerful capabilities that allow them to customize their on MTI’s new web site. That includes information like experience. Members are able to view detailed posts with TAC Awareness Bulletins, which cover subjects ranging their mobile devices, allowing them to answer questions from stress corrosion cracking to corrosion under insulation quickly or ignore posts that aren’t pertinent to their areas of to dissimilar metal welding. Over the past year, the expertise or interest. Feedback has been positive and traffic Knowledge Management PDC has been translating these has been steadily increasing. Participants have discovered technical documents into other languages, including how useful it is to get real–time answers to their critical Spanish and Chinese. The PDC is also uploading new questions from one of the most experienced networks of documents, links, and slide decks (including a set of materials engineers on the planet. sustainability presentations) to the expanding silo of information under Member Resources at mti–global.org. When the forum concept was first created at MTI, members often waited for TAC meetings to get answers. As projects generate new information and company Today, technical questions are often answered or leads to representatives request access to additional technical an answer are shared in a matter of minutes. The forum resources, MTI’s knowledge base will continue to grow and offers a growing database of questions and answers that deliver value to its member companies. A single question members can access anytime, anywhere. can open the door to new subject matter and possible solutions for members and their industry colleagues. In 2014, MTI envisions new features on the web site, including searchable eBooks. The goal is to try and put as much useful information as possible on the site, accessible via a single search engine. Many more pleasant surprises are in store for members.

Materials Technology Institute | 2013 Annual Report | 3 Annual Highlights

Accelerated Testing of FRP Effort Yields Improved Approach Users of FRP in the have long recognized ASTM C–581 in some cases,” points out Rasmussen. Swerea the limitations of the currently used test protocol to KIMAB wrote the test procedure in an ASTM test format determine material compatibility. The questionable data in anticipation of it being used as a standard in the future. it generates and the time it takes were a motivation for a project authorized in February 2010, which was championed The new process represents a step–change from the way by Pradip Khaladkar of Dupont. Swerea KIMAB recently FRP is currently tested using the ASTM C–581 protocol. completed this major undertaking for MTI in four phases. The value of this work will increase as MTI member companies and resin suppliers shift to this approach “The main objective was to develop a test which would and create more data. predict the long term properties of FRP in a short term exposure – that is, an accelerated test,” according to There were challenges that the Project Team had to meet Khaladkar. “The final report contains excellent visual along the way, according to Rasmussen. “For one, a very and quantitative data of degradation and proposes a test large amount of experimental data has been produced, protocol that determines the primary damage mechanism, covering degradation in several different chemical the rates thereof and their secondary effects, which can be environments and with different FRP types,” he says. used to determine the life of the equipment.” “In turn, this has demanded much effort from KIMAB but also the project team to correlate and interpret. In “Furthermore, it was the goal to reduce the test time from my opinion, having the project team so deeply involved the 6 – 18 months typically applied with ASTM C–581 in the evaluation has also contributed to much valuable to a maximum test time of three months,” adds Anders input to KIMAB and further strengthened the overall Rasmussen of Haldor Topsoe, a Project Team member. results interpretation.”

The new method could contribute to much faster Discussions that might not have ever started had MTI evaluation of materials of construction and thereby shorten not initiated the project, continue today. “It has been the time for putting new FRP process equipment into very satisfactory to see how far the project has reached,” service. “With further refinement of the method, we might concludes Rasmussen. “We knew from the beginning that eventually see this new methodology becoming an ASTM– it was not an easy task, but through active participation approved standard, which can supplement or even replace and cooperation, we have achieved useful results. In my opinion, we have come a long way for the cost expended.”

4 | The Knowledge Resource for Materials Solutions MTI’s Membership in WCO Strengthens both Organizations Corrosion is an enormously expensive problem, one pitting control, identifying fundamental best practices that should engineers against the toughest environments on the be part of every corrosion control strategy, and helping planet. In fact, the World Corrosion Organization (WCO) governments and industry acquire the expertise necessary estimates the cost of corrosion–related damage at roughly to implement corrosion control measures. $2.2 trillion. Faced with a challenging environment, everything from bridges to plant–critical CPI equipment MTI isn’t the only technical community that is a member is susceptible to its deteriorating mechanisms. Given that of the WCO. In fact, 27 corrosion organizations from even small wins in the battle versus pits, crevices, decay, around the world, including societies from North America, and insidious microorganisms (aka MIC) can make a big Europe, China, Japan, Australia, the Middle East, and impact, it isn’t hard to understand MTI’s decision to join its Africa, make for a formidable materials science team. In fellow corrosion combatants as a member of the WCO. exchange for a modest contribution of in–kind support, MTI was designated a Partner Member of the WCO, giving Although MTI has been involved with the organization it status alongside the European Federation of Corrosion, since 2006, it took a big step up in leadership recently. the Australasian Corrosion Association, and the Chinese In 2012, longtime Dow Chemical Company Materials Society for Corrosion and Protection. Engineer and MTI Board Member Gene Liening was elected to the WCO’s Board of Administrators. MTI MTI’s new status as a Partner member of the WCO Executive Director John Aller is serving on the provides it with immediate visibility and credibility in organization’s Board of Directors. parts of the world where the organization is unknown. “With the WCO connection, MTI is now more than just “The WCO’s vision is a world in which effective corrosion another not–for–profit technical society,” notes Liening. control measures are implemented by governments and “We are connected through WCO to its national corrosion corporations in every country of the world,” reports Liening. societies, and they will know us,” an asset for member It seeks to do this by facilitating the implementation of recruitment in these areas. Stronger ties between the two corrosion control measures. “As a small example, imagine organizations will also yield plenty of new opportunities to how much safer the public would be if all countries participate in the worldwide battle against corrosion. protected their underground pipelines to the same standards used in North America and Western Europe,” he continues. “If one extends that vision to protecting bridges, parking garages, dams, power infrastructure, water distribution systems, and industrial facilities, then it becomes clear how great the opportunity is to improve the public welfare.”

Liening notes that MTI’s and the WCO’s missions are complementary. “MTI improves the reliability and safety of chemical manufacturing using materials technology,” he points out. “The WCO seeks to do the same for all kinds of infrastructure using corrosion control technologies. They will do this by raising public and governmental awareness of the importance of corrosion Annual Highlights

Interest in MTI Blossoms at Osaka, Japan AsiaTAC Meeting EuroTAC Meeting Focuses on Asset Integrity/Management As MTI’s AsiaTAC organizing committee planned its first Long after Chair Michael Turner (AkzoNobel) adjourned major conference outside of China, the group estimated the 2013 EuroTAC Meeting, discussions continued in that a meeting in Japan might draw 20−25 attendees. As it small groups. Member representatives talked about the turned out, those numbers were very conservative. AsiaTAC new “Standards” project team that was formed, common Japan, hosted by MTI member company Mitsui Chemicals technical issues, and even the location for a 2014 meeting. Company in its Osaka headquarters facility, more than This year’s session at DECHEMA was so successful, that doubled those expectations, drawing 57 attendees. participants were already thinking ahead to the next year.

Representatives from 11 member companies listened to The 2013 edition of EuroTAC included 37 attendees keynote lectures, panel sessions, and presentations and took (including a few special guests), representing 15 member part in networking events April 11– 12. MTI welcomed 13 companies. Technical presentations at the annual meeting potential member companies to the meeting. included: • RBI–Worldwide–Future Practice The theme of the Osaka meeting, Rational Improvements • RBI with Bayer Technology Services of Equipment Reliability, was very pertinent and timely • Innovative Al–Slurry Coatings to many in the region. Presentations included keynote • Preparation of Inorganic Corrosion Protection Coatings lectures on Corrosion Cost in Asia; Integrating Operational by Sol–gel Technology Excellence and Asset Management to Manage Plant Risk; • DECHEMA – Three Partners – One Network and Today’s Situation of Materials Engineering in Japanese • Safeguarding Mechanical Properties Forged Flanges, CPI and the Future. Special technical sessions, featuring Cast Valves, Fittings 17 total presentations, focused on Aged Plant Problems, • Cost Efficient Tank Solutions Using Duplex Application of RBI, New Technology on Fabrication and • Life Cycle Costing Materials, and Utility Problems. • Operating Windows–API–581 • Integrity Operating Windows “The meeting was successful just by looking at the large number of attendees,” notes AsiaTAC Chair Henry Ye “The theme running through the two days, ‘Asset Integrity/ (DuPont). “My sense is that there is a lot of energy and Management’, seemed to work well and strike a chord interest for continuing this meeting and that it could be with most attendees,” noted Turner. “This is definitely a another incubator for new members and projects.” theme and a challenge that is important to the Chemical Producers within MTI.” “The Osaka meeting created a model where MTI membership can be cultivated in a region where MTI’s Incoming MTI Executive Director John Aller challenged presence is still developing,” explains Associate Director participants to improve EuroTAC and make it a hub for Jesse Chen. Based on the recent success in Japan, Chen creating more member company value. The Organizing and AsiaTAC leadership believe that Taiwan, Singapore, Committee and staff are looking at how to best implement Malaysia, and other areas might also be interested in MTI’s the member suggestions that Aller’s questions generated, wealth of technical resources. MTI is also exploring growth not just at future EuroTAC meetings, but in face–to–face opportunities in other regions around the world, including sessions, on the MTI web site, and in GoToMeetings the Middle East. throughout the year. New Associate Director, New Projects The last time that Randy Scheel sat at the head table of an AmeriTAC Meeting, he was wielding a gavel. The former TAC Chair returned to the stage at AmeriTAC 110 in St. Petersburg, Florida, but in a different role. Scheel started as an MTI Associate Director in January 2013. Mary Cole Parul Koul

Student Interest in MTI Scholarship Grows He believes that his experience in leadership of TAC and on MTI’s Board of Directors will help him in his new role. The MTI Scholarship Committee decided to redistribute “The other piece, which isn’t common, is that I was a the $10,000 award, doubling its impact in 2013. For the first chemical plant manager,” points out Scheel. “I was also in time, two students enhanced their materials engineering charge of the process engineering group and had worked educations by taking two $5000 prizes, and money wasn’t for years with the process engineering side, which involved the only incentive for the applicants. As an added benefit, solving the types of problems that MTI focuses on. Not winners Mary Cole and Parul Koul were invited to the management problems, but technical problems.” AmeriTAC 111 meeting in St. Louis, where they had the opportunity to learn from and network with some of the Now that he is an Associate Director, Scheel is working world’s leading materials engineers. on a variety of projects, including one with which he is very familiar. “I was Project Champion on a Cleaning Manual, Cole, a sophomore Corrosion Engineering major at the then I turned that over to Michael Taylor (ATI) when University of Akron, and Koul, a senior Materials Science I retired,” he says. Now the former champion is tasked and Engineering major at the University of Illinois, with helping to finish what he started. What goes around, envision their work in materials engineering as having a comes around. positive influence on the oil and gas industry and the world at large. Both hope to apply their knowledge and skills Among his several additional projects, Scheel is toward improving existing standards and practices in the oil investigating better methods of delivering MTI’s training and gas field. programs to its members around the world. The improved eLearning platform could help member companies train The 2013 recipients plan on using their scholarship funds personnel in areas such as recognition of corrosion and FRP to help cover the cost of their undergraduate studies. inspection. Member companies currently have access to a “The knowledge that MTI believed in my hard work, storehouse full of technical information, available in books, in my undergraduate studies and my potential in the reports, DVDs, forums and other formats. Scheel and his process industry is inspiring,” said Koul. Cole added that fellow staff members plan to find new ways to deliver that the scholarship “has shown me the desire that working information, spreading even more value throughout the engineers have for students to succeed. Knowing there is a MTI network. support system behind me is priceless.”

Tuition, on the other hand, comes with a price tag, and more students turned in applications in 2012 than in previous years. Committee members suggest that the dual awards and publicizing the scholarships in college materials engineering departments might have had something to do with that. Undergraduate students in North America, Europe, and Asia are eligible to apply for the two MTI scholarships, which are formally awarded at NACE’s Corrosion conference each year.

Materials Technology Institute | 2013 Annual Report | 7 Annual Highlights

Casting Quality Prediction Presentation The reliability of fluid–containing castings, such as pumps that commercially available casting simulation software and valves, is critical in chemical processing plants, which produced consistent Niyama values when material has made it a hot topic at MTI. In fact, the topic is so hot property data and the Niyama calculation temperature that MTI backed a Casting Quality Prediction Project, were standardized. which ultimately yielded a potential preventative process that could help its members avoid costly schedule delays Phase II determined that the Niyama value was an accurate or even more serious in–service safety issues. predictor of the location of solidification shrinkage in nickel–base alloy castings. This portion of the project Working with the Steel Founders Association of America examined problems associated with limited–production cast (SFSA) and the University of Iowa, MTI studied the valves used in the most aggressive environments; custom Niyama criterion as a potential solution. The Niyama castings that can’t be replaced off–the–shelf. One of the criterion is a common simulation output variable routinely team’s most important achievements was development of used by foundries to detect solidification shrinkage in additional thermal data sets (thermo–physical properties) steel castings. It is a real quantity, with units based on the for the duplex stainless steel and nickel–base alloys, ratio of the local thermal gradient to the square root of particularly those that are ‘materials of choice’ in the CPI. the local cooling rate. A series of case studies showed that The accurate calculation of Niyama values relies implicitly the cause of leakage in valve and pump castings can be on the use of appropriate thermal data sets for the alloy attributed to micro–shrinkage, a defect too small to detect being considered. Since some of the alloys of interest on radiographic film. Niyama values reveal those trouble aren’t widely used, thermal property data simply didn’t spots where leaks might occur, so that necessary design exist, leading to the likelihood of unreliable Niyama adjustments can be made prior to the casting process. value calculations.

Phase I of the joint study demonstrated that the Niyama MTI revisited casting quality prediction in a follow–up calculation was a reliable predictor of solidification presentation at AmeriTAC 110. Malcolm Blair of SFSA shrinkage in castings. In addition, the project showed reviewed Project 204–10, which expanded the previous Niyama casting quality prediction work to include thermal data sets for 5%, 9%, and 12% Cr alloys. Blair indicated that there may be a need to provide thermal data sets for commonly used alloys that don’t have them. Though there is the possibility of additional studies, a final report is available in the Projects section of MTI’s web site. FRP Training Course Held in Louisiana MTI sponsored a two–day training program on Inspection challenges than are present for metallic equipment, where of New FRP Equipment & Piping February 18–19, 2013 in the inspector must validate both the creation of the raw Kenner, Louisiana. The course provided a comprehensive material alongside creation of the equipment.” overview of the areas that are of critical importance for evaluating the quality and conformance of new FRP Presenter and FRP inspection expert Juan Bustillos, equipment and piping. Bustillos & Associates, LLC covered the following topics during the spring training session: “While there are quite a few public courses, seminars, • FRP Materials – Resins, Reinforcements & Cure Systems and training classes to help younger and less experienced • FRP Manufacturing Methods Overview inspectors develop inspection competencies for metallic • Manufacturing Specifics – Vessels & Piping equipment, the same does not apply for fiberglass • Inspection & Testing reinforced plastic (FRP) equipment,” points out Hardin • Inspection Safety Wells, Sr. Advisor – Mechanical Tech Service at • Applicable Codes & Standards and MTI Project Champion. • Flaw Definitions – Descriptions of all common flaws “The membership of the Materials Technology Institute • FRP Flaws & Imperfections (i.e. – what determines recognized the lack of similar training for FRP equipment. an acceptable quality product) The MTI FRP Inspector training class was designed as a first step towards filling that void.” The FRP course is just one more example of the training sessions that MTI develops for its members (some are “Unlike metallic equipment, where the raw materials also available to non–members). The interactive sessions (plate, pipe, and fittings) are homogeneous and built in provide opportunities for the organization to share critical accordance by others per longstanding industry standards, knowledge with engineers, from beginners to some of the the FRP materials used for FRP equipment are very much most experienced CPI professionals, in processing plants non–homogeneous and are created by the fabricator around the world. It’s another opportunity for MTI to as the equipment is being produced,” explains Wells. spread best practices and add value globally. “These features create significantly greater inspection

Materials Technology Institute | 2013 Annual Report | 9 MTI maximizes member asset performance by providing global leadership in materials technology to improve safety, reliability, sustainability and profitability. MTI’s Mission

MTI will be the process Benefits of Membership MTI’s role is increasingly important as materials options industries’ first choice expand in number and complexity and as shortages of trained for materials technology staff constrain operations. Through membership, companies gain the knowledge they networking and solutions. need to better develop, manage, and maintain green–field and retrofit construction projects, leading to greater MTI’s Vision efficiency, safety, reliability, sustainability and profitability. Benefits: • Rapid and efficient solutions to problems • Access to an expert network that includes some of the world’s foremost materials technologists for immediate and vetted consultation • A pool of cooperative research funding that multiplies the collected membership dues • An opportunity to select, scope, and lead projects conducted by others • Privileged access to internally developed information and project output • A searchable database of more than 30 years of Forum questions and discussion In addition, MTI helps member companies achieve bottom– line savings by transferring existing knowledge into commonly used practices, conducting technology evaluation studies, and providing access to a network of materials experts to help with urgent problems. The representatives of member companies who participate in MTI activities help to raise the knowledge base among diverse plant staff and often become the in–house expert (i.e., the “go–to person”) for materials technology solutions. In addition, the interaction among materials specialists and the leadership opportunities within MTI enhance career development. Report of the Chair – Board of Directors

Time is a funny thing. We all If all these accomplishments and transitions sound familiar, seem to need more of it, yet they should. They are the strategic initiatives toward which we all have the same amount we, as an organization, were working all along, including of it. Do you know what else is succession planning. Yes — things change, and time odd about time? Unless you’re marches on. waiting for someone, a second is a second and a minute is a For example, the speed, forms and style of knowledge minute, but a year isn’t always a transfer continue to change rapidly. “Fast–track” projects year. Did you ever say to yourself are the new normal. Decisions are expected in hours – something like, “Wow, it’s not days or months. The same is true for tasks familiar already October?!” or “It’s my birthday again?!” Compare to us such as materials selection, compatibility testing, that year to the one spent recovering from some medical equipment assessment and whether or not to join MTI. condition or enduring some great challenge in your life. Yes, Our responsibilities today demand speed and efficiency but time is a funny thing. with absolutely no loss of quality or accuracy. Combine those demands with the ramifications of bad decisions With that in mind, you can imagine my surprise at the and poor selections as they relate to safety, sustainability, realization that three whole years have passed since I was operability and profitability and you have the basis for MTI first bestowed the honor of leading this esteemed knowledge membership. resource for materials solutions we call MTI. Let me simply say that I have cherished this experience and consider it a Since 1977, MTI has served its members as the preferred career milestone. I am truly humbled to have been honored knowledge resource for materials technology solutions. with this responsibility at the request of my peers. My With the help of many, I’ve tried to guide the organization sincere gratitude goes to my fellow Directors, the entire along that sacred path. Thank you again for the opportunity MTI Staff, our legal counsel Bob McTamaney and all the to serve as your Board Chair. As a member representative, I MTI member companies and their representatives who look forward to continuing my active participation in MTI’s have continually supported MTI during my tenure. future success and further development of its knowledge resources. In those three short years, MTI has fully implemented its global activities in three regions, each with focused interests and activities unique to member operations in that part of the world. Membership has remained strong despite economic uncertainty — mainly because of MTI’s position as the primary knowledge resource for materials solutions Ed Naylor — AkzoNobel and the value of membership in such an organization. Chair, Board of Directors

Our project activity remains strong and diverse even as we enter into a new era of leadership. No, not just a new Board Chair, but also a new Executive Director. Congratulations and best wishes to Dr. James Macki on his retirement. On behalf of MTI, I wish Jim and Ruth health and happiness as we welcome John Aller as the new MTI Executive Director.

Materials Technology Institute | 2013 Annual Report | 11 Member Companies & Designated Representatives

Electro Chemical Engineering Air Liquide Corrosion Materials and Manufacturing Co. BASF Corporation Paris, France Baker, Louisiana Emmaus, Pennsylvania Florham Park, New Jersey J. Furtado R. A. Muro D. K. Heffner B. T. McCurry

Air Products and ELLETT Industries Ltd. Chemicals, Inc. Bayer Technology Port Coquitlam, Allentown, Pennsylvania Services GmbH Det Norske Veritas British Columbia, Canada J. J. Hoffman Leverkusen, Germany Dublin, Ohio R. D. Gill D. H. Lu C. E. Jaske

AkzoNobel , The Engineers India Limited The Dow Chemical Company New Delhi, India E. R. Naylor Becht Engineering Co., Inc. Midland, Michigan P. P. Lahiri Liberty Corner, New Jersey E. L. Liening E. Chant

Albemarle Corporation Baton Rouge, Louisiana ExxonMobil Chemical H. T. Wells Dow Corning Corporation Baytown, Texas Midland, Michigan J. J. Houben BP M. Cook , England W. K. Blanchard Allegheny Technologies Incorporated FMC Corporation Pittsburgh, Pennsylvania Philadelphia, Pennsylvania J. F. Grubb DuPont Company S. Kesavan Celanese Corporation Wilmington, Delaware Dallas, Texas S. P. Springer A. H. Rakhe Asahi Kasei Corporation Toyko, Japan Haldor Topsoe A / S M. Nakahara Lyngby, Dynamic Materials Corporation M. J. L. Oestergaard Boulder, Colorado Chevron Corporation M. Blakely Richmond, California Ascend Performance K. L. Ganschow Materials, LLC Haynes International, Inc. Houston, Texas Kokomo, Indiana Eastman Chemical Company W. Paden P. E. Manning Kingsport, Tennessee R. J. Sinko ConocoPhillips, Inc Houston, Texas D. R. McIntyre Hellenic Petroleum S. A. Thessaloniki, Greece I. A. Melas

12 | The Knowledge Resource for Materials Solutions Honeywell Morristown, New Jersey Rolled Alloys Syncrude Canada Ltd. P.A. Inc. D. E. Kaye Temperance, Michigan Fort McMurray, Alberta, Canada Houston, Texas P. Whitcraft M. Anderson O. Galloway

Jiuli Hi-Tech Metals Huzhou, Zhejiang, China Titanium Fabrication Corp. SABIC D. Lee Polycorp, Ltd. Fairfield, New Jersey Riyadh, Saudi Arabia Elora, Ontario, Canada T. Bartley H. Schrijen D. Nolan

Lloyd’s Register Praxair, Inc. Energy Americas, Inc. Sandvik Materials Technology TITAN Metal Fabricators Danbury, Connecticut Houston, Texas Sandviken, Camarillo, California J. E. White T. P. Munsterman M. Senatore T. F. Ukolowicz

Quadrant Engineering LyondellBasell Industries Plastic Products Saudi International Channelview, Texas Reading, Pennsylvania Petrochemical Company K. Kirkham A. D. Rickert Jubail Industrial City, Saudi Arabia TOTAL SA A. Biggs Paris, France F. Dupoiron

RathGibson Mitsui Chemicals, Inc. Lincolnshire, Illinois Schmidt+Clemens GmbH+Co KG Tokyo, Japan D. R. Moore Lindlar, Germany D. Jakobi H. Matsuda Tricor Industrial, Inc. Wooster, Ohio Shell Global Solutions C. S. Young International E.P., Inc. Houston, Texas RL Industries R. C. John Fairfield, Ohio Nickel Institute B. M. Linnemann Toronto, Ontario, Canada Victaulic G. Coates Easton, Pennsylvania M. J. Sewell SIMONA America Kirn, Germany Roben Manufacturing Co., Inc. J. Ploskonka Lakewood, New Jersey Outokumpu, Inc. K. Wyrough New Castle, Indiana P-E. Arnvig Webco Industries, Inc. Sand Springs, Oklahoma Suncor Energy W. G. Bieber Calgary, Alberta, Canada The Roberts Company B. Tkachyk Winterville, North Carolina M. Eshelman

Materials Technology Institute | 2013 Annual Report | 13 Report of the AmeriTAC Chair – Technical Advisory Council

The theme for this year’s Annual In June, we met in St. Louis for TAC 111. Both of MTI’s Report is “The Knowledge 2013 Scholarship winners, Mary Cole and Parul Koul, Resource for Materials attended as guests at the summer session. On Monday Solutions,” and that promise evening the Ceramics PDC held a brainstorming session has certainly been realized focusing on a future training session on general awareness at our last three AmeriTAC of ceramics and inspection/NDT techniques for ceramics. Meetings, starting with TAC 109 An Integrity and Condition Assessment (ICA) PDC in Austin, Texas. While Austin presentation on Inspection utilizing Unmanned Air may be in the Lone Star State, it Vehicles (UAVs) ignited discussions that continued is not a complete representation throughout the meeting. The presenters shared an Aeryon of Texas — in much the same way that if you attend only Scout quadcopter, giving attendees a firsthand look at the one AmeriTAC meeting, you won’t get a complete picture technology. Jeff Dudley of LeadeReliability drove home of all the activities going on in this TAC. Those who important points in a presentation on one of the hottest participate on a regular basis realize the full value that MTI topics in the industry, reliability, in “Are You Reliable can deliver. A brief recap of the three meetings highlights Enough?” Our second structured forum, presented by Matt our accomplishments. Fonte of Dynamic Flowform Corporation, introduced flowforming technology for making long seamless pipes and The Austin meeting (AmeriTAC 109) started with a tour tubes with very precise dimensions. of the University of Texas Separation Center to learn about their activities in control technology. In the evening, PDC In addition to all of the interesting presentations, several Champions, Board and TAC leadership, as well as Staff met new potential project teams formed at AmeriTAC 111, to discuss a replacement for the Roadmap. The main goal of including: 1) Integrity Assessment of Castable Systems 2) the meeting was determining how to generate project ideas CUI Mitigation through Alloying Steel or TSA at Pipe and execute more efficiently. At the Wednesday structured Mills, 3) State of the Art Review of Polymers NDE, 4) forum session, a representative of the U.S. Department of Plastic Welding Training, 5) Training for In–Service FRP Energy spoke on projections of energy consumption and Inspection, and 6) Improved Risk Modeling for CUI. The the supply side of shale gas development. In addition, our project High Temperature Behavior of Weld Joints in Cast esteemed MTI Legal Counsel, Robert McTamaney, brought 20Cr–32Ni–Nb alloy was also presented for funding and us up to date on intellectual property laws. approved. The very active June Meeting is just another example of how much valuable information and networking In February many of us came in out of the cold for TAC 110 we manage to fit into a few days during our meetings. in St. Petersburg (Florida not Russia). On Monday evening, the Polymers PDC held a Strategic Brainstorming Session. AmeriTAC has undergone a great deal of change this Four potential projects came out of our traditional Tuesday past year, and we continue to strive to adapt to member project team meetings: Abrasion Resistance of Polymers, needs. Our meetings now include more structured forum Development of Training Material on Uses/Applications presentations, and we have improved our review process for of Non–Metallics, Duplex Stainless Steel Training online forum questions. You also have the option to contact Seminar, and Atlas of Microstructural Nickel CRA. me and my Vice Chair, Mike Anderson, at any time with During the structured forum portion of the TAC meeting, your suggestions. Our goal is to look for ways to add value at Malcolm Blair from SFSA presented an update/review of the AmeriTAC Meetings, so that they continue to be your development of the Niyama factor data sets, and Karen knowledge resource for materials solutions. Maxson of DuPont reviewed how DuPont implements the MTI methodology for FRP storage tank RBI. In addition, The project Ceramic Fiber Insulation Thermal Properties – Part 2 was approved by TAC. David Barber AmeriTAC Chair

14 | The Knowledge Resource for Materials Solutions Report of the AsiaTAC Chair – Technical Advisory Council

This year, AsiaTAC made a Aller, Asset Optimization LLC, and the local government milestone–type of achievement: inspection agencies. This concept of RBI is still pretty new we held the first AsiaTAC in China/Asia region. It is just being adopted by the local meeting outside of China. It was regulators and government inspection agencies. So the held at the Mitsui Chemicals timing of the training was perfect, and it met the needs of facility in Osaka, Japan, on April our members exactly. 11–12, 2013. Here I would like to thank Mitsui’s support in making It was also the first time that AsiaTAC collaborated with this event a success, and thank NACE International to organize one of the symposiums at Nakahara san of Asahi and the NACE East Asia & Pacific Rim Area Conference in Matsuda san of Mitsui for helping to organize the meeting. Shanghai. The theme was Corrosion Resistant Materials for Chemical Industry, and six MTI member companies, This meeting was co–organized with the Society of including Asahi, BASF, Bayer, DuPont, Haynes, and Jiuli, Chemical Engineers of Japan. The total number of the provided presentations. Both associations found great attendees was 57, including employees from 11 member benefit during the meeting, and we decided to continue this companies and 13 potential member companies. We were type of collaboration in the future. honored that Prof. Toshio Sibata, Emeritus Professor of Osaka University, accepted the invitation to provide a A number of new projects were developed during the keynote lecture on Corrosion Cost in Asia. There were a annual conference at Shanghai. The project team on large number of presentations on the topics of Aged Plant fitness for service (FFS) technology will hold a training Problems, New Technology on Fabrication and Materials, session in October 2013. A project/seminar on reliability Utility Problems, Application of RBI, and other open engineering training, being developed by Hulin Zhu of sessions. DuPont, is tentatively scheduled for May 2014. The project on translating MTI documents to Chinese is going on We gained confidence from the Japan meeting, and we plan well with the strong help of MTI AmeriTAC members. to expand our AsiaTAC events in other Asian countries. Some documents have been translated, and a number of Currently targeted locations include Taiwan, India, as documents have been identified for translation. well as other regions and countries. We expect that these meetings and trainings in different locations can bring There was some organizational change in the core great benefits to the local production sites of our member leadership team of AsiaTAC. After the former Vice Chair, companies and also help attract more potential members. Albrecht Girgensohn of Bayer left China and returned back to his hometown in Germany, two new Vice Chairs The annual AsiaTAC meeting at Shanghai was held were elected: Guangbin Rao of BASF and Ryan Yang of October 18–19, 2012. It was another successful conference Air Products. They are both young and enthusiastic about with more than 70 attendees representing 23 member leading MTI AsiaTAC events. I’m confident that this new companies and potential members. The speakers and the core leadership team will be able to achieve great things in audience shared their knowledge and interest in several the future and bring more benefits to our members. major technical fields: metallurgy, corrosion and prevention, mechanical integrity, fabrication, inspection, as well as non–metal applications and failure analysis.

Before the annual conference, MTI offered a technical Henry Ye training session on Risk Based Inspection provided by John AsiaTAC Chair

Materials Technology Institute | 2013 Annual Report | 15 Report of the EuroTAC Chair – Technical Advisory Council

Need a helping hand? At some experiences and solutions than we probably experience point or other, I think we could within our own company alone. No one individual knows all use a little help. It seems as much as the community. that in our industries, we are continually being pressed to look All these building blocks are cemented during the for better and faster solutions to regular face–to–face meetings, none more so than the the problems that we face, but last EuroTAC meeting in Frankfurt, Germany. For me, in many cases, we have to solve the highlight was the openness of the participants and those issues with probably fewer their willingness to participate in constructive, sometimes resources than were available challenging discussions. in the past and provide definitive answers according to a timescale that is measured in hours and days instead of This year’s meeting was loosely based around Asset weeks and months. Integrity/Management, which seemed to work well and strike a chord with most attendees, as this definitely For many, the 21st century way to address these issues is the appeared to be a theme and a challenge that was important Internet. The World Wide Web is awash with information, to most of the chemical producers within MTI. Which often useful; however, in many cases, the greatest difficulty brings me to my final point: What are your important is not finding the information, but interpreting what issues that we need to address in 2014? you find and adapting the results to your own particular situation. To be able to do this, some level of expertise Remember, it’s your EuroTAC. Use this opportunity is necessary. to get the best value out of your company membership! So, does anyone need a helping hand? Then let us know One way of more effectively managing and exploiting what you need. the available knowledge is to use the “collective” that is otherwise known as MTI. Every individual member has expertise in one or more areas — so why not make use of this instant access to a wide range of industry experts and the on–line problem solving opportunities?

We all benefit from by being part of a large professional Michael Turner peer group. This enables us to keep our knowledge current EuroTAC Chair by being exposed to a wider range of different technologies,

16 | The Knowledge Resource for Materials Solutions Executive Director’s Letter

Transitions can be very (2) Gene Liening’s team building leadership in training positive events. After 18 years the membership to adopt the MTI Culture, which has with MTI, I will be retiring at allowed MTI members to function efficiently even as the the end of 2013. membership expanded.

This year has been a transition Those and many other decisions have built MTI into the from my leadership to John great organization that it is today. Now it’s time to look Aller’s, and it has worked well. ahead to a new MTI. I’ve seen a glimpse of MTI’s future, In addition to my upcoming and I like what I see. If MTI were to have an IPO, I would retirement, Tony Scribner and buy the stock! Barry Greene both retired and Randy Scheel and John Aller joined the staff this year.

In a larger sense, MTI has always been transitioning to refocus the organization on our members’ needs, which James M. Macki are always changing. The Board of Directors and the TAC Executive Director leaders are working with John and the rest of the staff to develop a strategic plan that will keep MTI relevant well into the 21st century.

There have been many decisions over these last 18 years that have kept MTI healthy. Two key decisions were:

(1) Bill Fort’s and Galen Hodges’ leadership in changing the MTI dues structure to increase 3% per year for inflation, which has resulted in our being solvent financially and able to expand into China and take on over 20 funded projects at a time.

Materials Technology Institute | 2013 Annual Report | 17 Board of Directors

The Board of Directors, elected by the Member Representatives, manages the business of MTI. The four critical functions of the Board of Directors include planning, organization, leadership, and control.

Seated, Left to Right: Michael Anderson, Robert Sinko AmeriTAC Vice Chair, Ex Officio Associate Materials Engineer Paul E. Manning Area Leader – Materials Inspection Eastman Chemical Company Senior Market Manager & Metallurgist & Engineering Services Kingsport, Tennessee Haynes International, Inc. Syncrude Canada Ltd. Kokomo, Indiana Fort McMurray, Alberta, Canada Not Pictured: Maria Jose Landeira Oestergaard, Paul K. Whitcraft Srini Kesavan Vice Chair BOD Director of Quality Safety & Engineering Principal Engineer Principal Engineer, Senior Materials Specialist Rolled Alloys FMC Corporation Haldor Topsoe A/S Temperance, Michigan Philadelphia, Pennsylvania Lyngby, Denmark Steven P. Springer Henry Ye, AsiaTAC Chair, Ex Officio Edward R. Naylor, Chair BOD Senior Consultant, Materials Engineering Materials Engineering Consultant Senior Materials Engineering Associate DuPont Company DuPont Engineering and Technology AkzoNobel Wilmington, Delaware Wilmington, Delaware Amsterdam, The Netherlands Eugene L. Liening Michael Turner, EuroTAC Chair, Ex Officio Eileen Chant Senior Materials Engineering Associate Senior Consultant – Materials Technology Manager of Technology Development & Support The Dow Chemical Company AkzoNobel Becht Engineering Co., Inc. Midland, Michigan Amsterdam, The Netherlands Liberty Corner, New Jersey Kelly E. Wyrough Standing, Left to Right: David Barber, AmeriTAC Chair, Ex Officio Director of Technical Services Dale K. Heffner Materials Engineering Associate Roben Manufacturing Co., Inc. Vice President The Dow Chemical Company Lakewood, New Jersey Electro Chemical Engineering & Midland, Michigan Manufacturing Co. Emmaus, Pennsylvania

18 | The Knowledge Resource for Materials Solutions Directors & St. Louis Staff

Seated Left to Right: Standing Left to Right:

Emory Ford Heather Stine Associate Director Associate Director

Debby Ehret Katherine Reinecke Operations Director Administrative Assistant

John Aller James Macki Associate Director Executive Director MTI FELLOWS Jesse Chen Randy Scheel James M. Macki — 2011 Associate Director Associate Director William C. Fort III — 2010 Bill Watkins Kirk Richardson Associate Director Associate Director W.B.A. (Sandy) Sharp — 2006 Lori Elgin Robert A. McTamaney — 2006 Administrative Assistant Greg Kobrin — 2005 George Elder — 2004 Warren Pollock — 2004 Robert Puyear — 2002 Sheldon Dean — 2001 Paul Dillon — 2001 Galen Hodge — 2001 Bert Krisher — 2001 Technical Advisory Councils

The Technical Advisory Councils, composed Clive Breeden 3 Otis Galloway 1, 2, 3 of one representative of each member company, Senior Corrosion / Materials Advisor President solicit project ideas, define projects, and recommend BP P.A., Inc. projects for approval by the Board of Directors. Gregor Bueche 3 Kevin L. Ganschow 1, 2, 3 David Barber, AmeriTAC Chair 1 Europe Linings Sales Manager Materials Engineer Materials Engineering Associate Quadrant Engineering Plastic Products Chevron Corporation The Dow Chemical Company Jason Carter 2 Robert D. Gill 1, 2, 3 Michael Anderson, Director of Sales Asia Vice President, Sales AmeriTAC Vice Chair 1, 2, 3 Dynamic Materials Corporation ELLETT Industries Ltd. Area Leader – Materials Inspection & Eileen Chant 1, 2, 3 John F. Grubb 1 Engineering Services Manager of Technology Manager Product Technology – Development Syncrude Canada Ltd. Development & Support Allegheny Technologies Incorporated 2 Becht Engineering Co., Inc. Henry Ye, AsiaTAC Chair Larry J. Haubner 1 Materials Engineering Consultant Dior Chen 2 Manager of Business Development DuPont Engineering and Technology Sales Engineer TITAN Metal Fabricators 2 Haynes International, Inc. Rao Guangbin, AsiaTAC Co Vice Chair John Huang 2 Materials Engineering & Technical Inspection Daniel D. Christian 3 Salesman BASF Corporation Director Allegheny Technologies Incorporated 2 Oil, Gas, Chemical & Power Markets Ryan Yang, AsiaTAC Co Vice Chair Dale K. Heffner 1, 2, 3 Materials Engineer, Asia Europe – Middle East – India – Africa Vice President Air Products & Chemicals, Inc. Victaulic Electro Chemical Engineering Michael Turner, EuroTAC Chair 3 Gary Coates 1 & Manufacturing Co. Senior Consultant – Materials Technology Consultant Mark P. Hilton 1, 2, 3 AkzoNobel Nickel Institute Engineering Fellow Materials – Corrosion Natalie Gelder, EuroTAC Vice Chair 3 Marc Cook 1, 3 Ascend Performance Materials, LLC Materials Engineer Technical Inspection & Reliability Engineer Dragon Ho 2 Materials Engineering & Maintenance Dow Corning Corporation Technical & Development Manager BASF Corporation Matt Curtis 1, 2 Sandvik Materials Technology 1, 2, 3 Product Development and Michael J. Anderson John J. Hoffman 1, 3 Area Leader – Materials, Technical Support Services Manager Materials Engineering Community Lead Inspection & Engineering Services SIMONA America Air Products & Chemicals, Inc. Syncrude Canada, Ltd. 2 Preeda Dansirisomboon 2, 3 1, 3 Head of Asset Lifecycle Management John J. Houben Poul-Erik Arnvig Senior Staff Materials Engineer Vice President Global Market Development Bayer Technology Services GmbH ExxonMobil Chemical Outokumpu Stainless – North America 1 Vinay P. Deodeshmukh 1 2, 3 Senior Staff Engineer Curtis P. Huddle William G. Bieber Materials Engineer General Manager Haynes International, Inc. Eastman Chemical Company Webco Industries, Inc. 1, 2, 3 François Dupoiron 1, 2, 3 1, 2, 3 Materials and Corrosion Expert Dietlinde Jakobi Albert Biggs General Manager – Research & Development General Manager Operational Excellence TOTAL Petrochemicals Services Centrifugal Casting Division Saudi International Hasse Eriksson 3 Schmidt + Clemens GmbH + Co KG Petrochemical Company Global Product Certification Manager 1 1 Det Norske Veritas Carl E. Jaske Michael Blakely Senior Principal Engineer Director of Sales for North and South America Milton Eshelman 1, 2, 3 Det Norske Veritas (USA), Inc. Dynamic Materials Corporation Senior Design Engineer 1 1 The Roberts Company Randy C. John W. Keith Blanchard Principal Research Engineer Projects and Senior Corrosion/Materials Advisor Robert L. Freed 1 Technology IR&D BP Senior Consultant, Materials Engineering Shell Global Solutions International E.P., Inc. 3 DuPont Company Nils Boehle Dan E. Kaye 1, 2, 3 Manager, Product & Quality Assurance Jader Furtado 1, 2, 3 Staff Engineer – Reliability Allegheny Technologies Incorporated Expert – R&D: Physical Metallurgy Honeywell 3 Air Liquide Paul Bosanko Srini Kesavan 1, 2, 3 CPI Market Manager Europe Principal Engineer Haynes International, Inc. FMC Corporation

20 | The Knowledge Resource for Materials Solutions Yong Joo Kim 1 Tim P. Munsterman 1, 2, 3 Chang-Ching Sun 2 Vice President Technology Technology Director / Engineering Director Market Development, Webco Industries, Inc. Lloyd’s Register Energy Americas, Inc. Business Area Stainless APAC Outokumpu Asia Pacific Ltd. Ken Kirkham 1, 2, 3 Masao Nakahara 1, 2, 3 Senior Advisor General Manager Peiwu Sun 2 LyondellBasell Industries Asahi Kasei Corporation Mechanical Integrity Team Leader Dow Corning Corporation Rocky Kuykendall 1, 2, 3 Edward R. Naylor 1 Vice President of Engineering Senior Materials Engineering Associate Brian Tkachyk 1, 2, 3 Titanium Fabrication Corp. AkzoNobel Maintenance and Reliability Services Suncor Energy P. P. Lahiri 1, 2, 3 Maria Jose Landeira Oestergaard 1, 2, 3 General Manager Principal Engineer, Senior Materials Specialist Johan van Roij 3 Engineers India Limited Haldor Topsoe A/S Senior Materials and Corrosion Engineer Shell Global Solutions International E.P., Inc. Denny Lee 2 Ruben Parga 1, 2, 3 Deputy General Manager Technical Sales Engineer, Metallurgy Joerg Wagner 3 Jiuli Hi-Tech Metals Corrosion Materials European Sales Manager TITAN Metal Fabricators John Leonard 1 Stephane Pauly 2 Sales Director Business Development Manager Yunxiang (Winnie) Wang 2 Jiuli USA Inc. Dynamic Materials Corporation Senior Materials / Corrosion Engineer BP Zhou Ling 2 Shuo Peng 2 PCE Engineering Specialist Manager, Asia R&D Center Nigel Ward 3 The Dow Chemical Company Victaulic Director Global Market Development Nickel Institute Jan Links 3 Jorge J. Perdomo 1 Senior Materials Specialist Staff Materials Engineer Hardin T. Wells 1, 2, 3 The Dow Chemical Company ExxonMobil Chemical Sr. Advisor – Mechanical Tech Service Albemarle Corporation Brian M. Linnemann 1, 2, 3 Eduardo Perea 3 Engineering Manager Business Development James E. White 1, 2, 3 RL Industries, Inc. Sandvik Materials Technology Associate Director Praxair, Inc. Achim Litzenburger 3 Ashok H. Rakhe 1, 2, 3 Product Manager Fellow Engineer Kelly Wyrough 1, 2, 3 SIMONA AG Celanese Corporation Director of Technical Services Roben Manufacturing Co., Inc. David H. Lu 1 Adam D. Rickert 1 Senior Materials and Application Development Manager Zha Xiaochun 3 Corrosion Specialist Department Quadrant Engineering Plastic Products Manager Bayer Technology Services GmbH Jiuli Europe Office Bernhard Rijpkema 2 Deepak C. Mahadeshwar 2 Senior Consultant – Polymeric Materials Daniel Yiptong 1, 2, 3 Mechanical Engineer AkzoNobel Technical Manager Shell Global Solutions International E.P., Inc. Polycorp, Ltd. Harry Schrijen 1, 2, 3 Hiroyasu Matsuda 1, 2, 3 Advisor Material & Welding Orson Yong 2 Director, Production & Technology Center SABIC Application Development Manager Mitsui Chemicals, Inc. Quadrant Engineering Plastic Products Zach Schulz 1, 2, 3 Benjamin T. McCurry 1 Applications Engineer Chuck S. Young 1, 2, 3 Materials & Inspection Engineer Rolled Alloys Business Development Manager BASF Corporation Tricor Industrial, Inc. Knuth Schweier 3 Dale R. McIntyre 1, 2, 3 Head Corrosion & Inspection Nick Zentil 2 Consultant Metallurgy Management Department General Manager TITAN Wuxi ConocoPhillips, Inc. Bayer Technology Services GmbH TITAN Metal Fabricators Ioannis A. Melas 1, 2, 3 Marcelo Senatore 1 Li Zhang 2 Metallurgical Engineer, Technical Marketing Manager Principal Engineer / Head of Section Inspection Department Sandvik Materials Technology Det Norske Veritas Hellenic Petroleum S. A. Mark J. Sewell 1 Licheng Zhang 2 Dallas R. Moore 1, 2, 3 Manager of Engineering Materials Technology Managing Director China Consultant & Management Resource Victaulic Nickel Institute RathGibson Robert J. Sinko 2, 3 Associate Materials Engineer Eastman Chemical Company 1 AmeriTAC 2 AsiaTAC 3 EuroTAC

Materials Technology Institute | 2013 Annual Report | 21 Financial Statements – June 30, 2013 & June 30, 2012

STATEMENTS OF FINANCIAL POSITION STATEMENTS OF ACTIVITIES

ASSETS June 30, June 30, 2013 2012 2013 2012 UNRESTRICTED NET ASSETS CURRENT ASSETS Revenues Cash and cash equivalents $ 573,077 $ 675,635 Membership dues $ 1,701,226 $ 1,601,370 Certificates of deposit 2,182,168 2,182,168 Interest 51,866 72,412 Accounts receivable 22,409 — Publication income 31,312 46,525 Accrued interest receivable 12,997 18,982 Meeting fees 29,384 33,160 Publications inventory 104,182 108,412 Investment loss ( 21,647 ) ( 16,256 ) Prepaid expenses and deposits 10,270 30,154 Total Support and Revenue 1,792,141 1,737,211 Total Current Assets 2,877,144 3,015,351 Expenses PROPERTY AND EQUIPMENT Salaries 722,921 546,832 Office equipment at cost 114,317 118,088 Projects 713,099 693,604 Less accumulated depreciation 83,173 65,034 Travel 142,173 123,510 Total Property and Meeting expenses 126,444 134,808 Equipment, Net 31,144 53,054 Payroll taxes 67,105 71,350 Telephone & communications 54,434 34,859 TOTAL ASSETS $ 2,877,144 $ 3,068,405 Insurance 43,624 35,618 Office supplies 38,563 36,855 China operations 35,220 37,301 LIABILITIES AND NET ASSETS Retirement plan contributions 33,414 35,680 CURRENT LIABILITIES Professional services 29,900 29,500 Accounts payable and Depreciation 29,358 13,090 accrued liabilities $ 235,205 $ 121,273 Membership development Deferred Income 871,755 829,350 & retention 25,774 39,021 Total Current Liabilities 1,106,960 950,623 Postage 22,598 22,201 Rent 17,627 20,768 NET ASSETS Cost of publications 11,539 14,433 Unrestricted 1,770,184 2,117,782 Scholarships 10,000 — Computer and internet expenses 9,882 — TOTAL LIABILITIES Printing 4,547 3,708 AND NET ASSETS $ 2,877,144 $ 3,068,405 Loss on asset retirement 1,055 — Taxes and licenses 462 379 See accompanying notes to financial statements. Total Expense 2,139,739 1,893,517 Total Decrease in Net Assets ( 347,598 ) ( 156,306 ) Net Assets, Beginning of Year 2,117,782 2,274,088 Net Assets, End of Year $ 1,770,184 $ 2,117,782

See accompanying notes to financial statements.

22 | The Knowledge Resource for Materials Solutions Independent Auditors’ Report

STATEMENTS OF CASH FLOWS

Year Ended June 30, Board of Directors 2013 2012 Materials Technology Institute, Inc. Cash Flows from Operating Activities We have audited the accompanying financial statements Decrease in net assets $ ( 347,598 ) ( 156,306 ) Materials Technology Institute Inc. (the Organization), Adjustments which comprise the statements of financial position as of Depreciation 29,358 13,090 June 30, 2013 and 2012, and the related statements of Change in fair value activities and cash flows for the years then ended, and of investments 24,103 21,407 the related notes to the financial statements. Decrease in reserve for Management’s Responsibility for the Financial Statements inventory obsolescence ( 21,746 ) ( 5,444 ) Management is responsible for the preparation and fair (Increase) decrease in assets presentation of these financial statements in accordance with Accounts receivable ( 22,409 ) 87,839 accounting principles generally accepted in the United States Prepaid Expenses 19,884 ( 23,375 ) of America; this includes the design, implementation, and Other receivables 5,985 4,351 maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free Publication inventory 25,976 ( 12,990 ) from material misstatement, whether due to fraud or error. Increase in liabilities Accounts payable 113,932 78,061 Auditors’ Responsibility Deferred revenues 42,405 63,150 Our responsibility is to express an opinion on these Net Cash Provided (Used) by financial statements based on our audits. We conducted Operating Activities ( 130,110 ) 69,783 our audits in accordance with auditing standards generally accepted in the United States of America. Those standards Cash Flows from Investing Activities require that we plan and perform the audits to obtain Purchase of property and equipment ( 8,503 ) ( 33,878 ) reasonable assurance about whether the financial Loss in asset retirement 1,055 — statements are free from material misstatement. Redemption of certificates of deposit 629,000 504,000 An audit involves performing procedures to obtain audit Purcahse of certificates of deposit ( 594,000 ) ( 250,000 ) evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ Net Cash Provided by judgment, including the assessment of the risks of material Investing Activities 27,552 220,122 misstatement of the financial statements, whether due to fraud Net Increase (Decrease) in Cash or error. In making those risk assessments, the auditor considers and Cash Equivalents ( 102,558 ) 289,905 internal control relevant to the entity’s preparation and fair Cash and Cash Equivalents, presentation of the financial statements in order to design audit Beginning of Year 675,635 385,730 procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of Cash and Cash Equivalents, the entity’s internal control. Accordingly, we express no such End of Year $ 573,077 $ 675,635 opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant See accompanying notes to financial statements. accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Materials Technology Institute Inc. as of June 30, 2013 and 2012, and the changes in its net assets and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

Kiefer Bonfanti & Co. LLP St. Louis, MO September 17, 2013

Materials Technology Institute | 2013 Annual Report | 23 Notes to Financial Statements – June 30, 2013 & June 30, 2012

1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES publication. Inventories are stated at the lower of cost or market with cost being determined by the first–in, first–out method. Organization The summary of significant accounting policies is presented to management has ascertained that the inventory of publications is subject assist in understanding the Organization’s financial statements. These to obsolescence due to advances in technology and other factors affecting accounting policies have been consistently applied in the preparation the industries it serves. Accordingly, management has elected to establish of the financial statements. a reserve for obsolescence with respect to ascertaining the realizable fair market value of its publications. Organization: The Organization was incorporated under the name Materials Technology Institute of the Chemical Process Industries, Inc. Accounts Receivable: Accounts receivable are stated at the amount on December 13, 1976 pursuant to the laws of the State of New York as a management expects to collect from balances outstanding at year end. tax exempt organization under the Internal Revenue Service Code Section Management of the Organization evaluates the collectability of individual 501(c)(6) to engage principally in the business of sponsoring research accounts. At June 30, 2013 and 2012, the Organization determined that projects for the chemical process industries. Effective December 4, 2003, accounts receivable balances are fully collectible, and therefore, a valuation the Organization changed its name to Materials Technology Institute, allowance is not considered necessary. Inc. The member companies are located in various countries. Income Taxes: The Organization is exempt from income taxes under Basis of Accounting: The financial statements of the Association have Section 501(c)(6) of the Internal Revenue Code. been prepared on the accrual basis of accounting. Financial accounting standards for uncertain tax positions prohibit financial Use of Estimates: The preparation of financial statements in conformity statement recognition of the impact of a tax position if the position is not with generally accepted accounting principles requires management to “more likely than not” to be sustained on audit, based on the technical make estimates and assumptions that affect certain reported amounts and merits of the position. The standards also provide guidance on measurement, disclosures. Accordingly, actual results could differ from those estimates. recognition, classification, transition, and disclosure requirements for uncertain tax positions. The Organization’s federal Form 990 for tax years Financial Statement Presentation: A description of the three net asset 2010 and later remain subject to examination by taxing authorities. categories follows: Subsequent Events: The Company has evaluated subsequent events Unrestricted Net Assets — Includes resources available for the through September 17, 2013, the date which the financial statements were support of operations, which have no donor–imposed restrictions. available to be issued, for possible additional recognition or disclosure.

Temporarily Restricted Net Assets — Includes resources for which 2) INVENTORIES donor–imposed restrictions have not been met. Inventories at June 30, 2013 and 2012 consisted of the following: Permanently Restricted Net Assets — Includes resources for which donor–imposed restrictions are permanent. Year Ended June 30, 2013 2012 There were no temporarily or permanently restricted net assets at June 30, Finished publication inventory $ 153,854 $ 179,830 2013 and 2012. Less reserve for obsolescence ( 49,672 ) ( 71,418 ) Total Inventories $ 104,182 $ 108,412 Cash and Cash Equivalents: The Organization considers all highly liquid investments with an initial maturity of twelve months or less 3) CONCENTRATION OF CREDIT RISK when purchased to be cash equivalents. Financial instruments that potentially subject the Organization to Investments: The Organization’s Board of Directors maintains a policy concentrations of credit risk consist principally of temporary cash of limiting its investments to certificates of deposits with maturities of one investments. The Organization places its temporary cash and long term year or longer. Investments are presented in the statements of financial investments with financial institutions and limits the amount of credit position at fair value. Unrealized gains and losses are included in the exposure to any one financial institution. As of June 30, 2013, the change in net assets in the accompanying statements of activities. Organization’s temporary cash and certificates of deposit were within insured limits. Property and Equipment: Property and equipment are stated at cost, or fair market value if donated, less accumulated depreciation. Depreciation is pro- 4) FAIR VALUE MEASUREMENTS vided on the straight–line method over the following estimated useful lives. Financial Accounting Standards establish a framework for measuring fair Office equipment ...... 5 – 7 years value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy Depreciation expense for the years ended June 30, 2013 and 2012 was gives the highest priority to unadjusted quoted prices in active markets for $29,358 and $13,090, respectively. identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair Expenditures over $1,000 for purchases and for major renewals and value hierarchy under the standards are described as follows: betterments that extend the useful lives of property and equipment are capitalized. Expenditures for repairs and maintenance are charged to Level 1 Inputs to the valuation methodology are unadjusted quoted expense as incurred. prices for identical assets or liabilities in active markets.

Revenue Recognition and Deferred Income: Revenue is recognized in Level 2 Inputs to the valuation methodology include: the period the income is earned. Membership income is typically received in advance. Accordingly, membership income is earned ratably over the • Quoted prices for similar assets or liabilities in active markets; period, with the unearned portion shown as deferred income at the date of the Statement of Financial Position. • Quoted prices for identical or similar assets or liabilities in inactive markets; Inventories: The Organization maintains an inventory of publications which report the results of its research projects. Direct costs of editing • Inputs other than quoted prices that are observable for the asset and production are capitalized and a unit value is established for each or liability;

24 • Inputs that are derived principally from or corroborated by observable market data by correlation or other means. Schedule of Annual

If the asset or liability has a specified (contractual) term, the Membership Dues for 2014 level 2 input must be observable for substantially the full term of the asset or liability. Annual Sales Year 2014 (US$ Billions) Dues – US$ Level 3 Inputs to the valuation methodology are significant, < 0.2 ...... $ 11,700 unobservable inputs. 0.2 – 0.4 ...... $ 16,200 The asset or liability’s fair value measurement level within the fair value 0.4 – 0.8 ...... $ 20,500 hierarchy is based on the lowest level of any input that is significant to the 0.8 – 1.5 ...... $ 24,900 fair value measurement. Valuation techniques used need to maximize the 1.5 – 3.0 ...... $ 29,400 use of observable inputs and minimize the use of unobservable inputs. 3.0 – 6.0 ...... $ 33,800 6.0 – 12.0 ...... $ 38,100 The inputs or methodologies used for valuing investments may not be 12 – 25 ...... $ 42,500 an indication of the risk associated with investing in those securities. Investments in collective investment funds are valued at the net asset 25 – 50 ...... $ 47,000 value per unit on the valuation date. Furthermore, the Organization 50 – 100 ...... $ 51,400 believes its valuation methods are appropriate and consistent. The use 100 – 200 ...... $ 55,800 of different methodologies or assumptions could result in a different fair 200 – 400 ...... $ 60,300 value measurement at the reporting date. 400 – 800 ...... $ 64,600 800 – 1,500 ...... $ 69,000 The Organization values all investments based on level 1 inputs.

5) EMPLOYEE BENEFIT PLAN

The Organization maintains a qualified savings plan under Internal Revenue Code section 401(k) for employees who meet certain age and length of Basis for Assessing Company’s service requirements. Subject to statutory limits, qualifying employees may elect to defer a portion of their salary. The Organization currently Membership Dues matches 100% of the employee deferrals not to exceed 5% of compensation. Matching contributions were $33,414 and $35,680 for the years ended June Dues for membership are generally based upon the total sales 30, 2013 and 2012, respectively. of the member company and its affiliates. Dues for specific classes of members are as follows: 6) OPERATING LEASES Dues for members will be determined from the established dues As of June 30, 2013, the Organization leases its office facilities and certain schedule and will be calculated on the basis of the most recent office equipment under non–cancelable operating leases for which expire between June 2015 and June 2017. The future minimum lease payments audited Corporate sales. For privately held corporations, the under the leases are as follows: total corporate sales of the units must be certified by an officer.

Years Ending June 30, Amount The Board of Directors may make exceptions to this policy 2014 $ 22,150 in cases where, in its judgment, the affiliates of the applicant, 2015 22,559 even though they are related to the chemical processing 2016 19,570 industry, cannot reasonably be expected to benefit from the 2017 19,739 Total Future Minimum Lease Payments $ 84,018 membership in MTI.

Leasing expense for office facilities and for office equipment was $17,627 Association memberships will be considered on a case–by–case and $3,637, respectively, for the year ended June 30, 2013 and $22,776 and basis, with regard to acceptance, dues levels, and conditions of $3,637, respectively, for the year ended June 30, 2012. membership.

7) COMMITMENTS

As of June 30, 2013, the Organization is a party to several research projects requiring estimated payments of approximately $1,100,123 over the remaining life of the existing projects.

8) FOREIGN ACCOUNTS

The Organization has contracted MCI Group to perform administrative functions and to oversee the financial operations in China. These functions include management of a Chinese bank account that is held to conduct financial transactions in the local currency. The balance of this account at June 30, 2012, was $3,743. This account had no balance at June 30, 2013.

Graphic Design: O’Neal Design, St. Louis, Missouri

25 About Materials Technology Institute

The Materials Technology Institute, founded in 1977, is a unique, not–for–profit technology development organization representing private industry. It sponsors projects focused on both developing new technology and transferring existing knowledge to day–to–day practice. Practical, generic, nonproprietary studies are conducted on the selection, design, fabrication, testing, inspection, and performance of materials of construction used in the process industries. The scope of work includes evaluation of metallic, and non–metallic materials, optimum design applications, fitness–for–service, mechanical integrity and life cycle determinations, and economic factors affecting performance of vessels, tanks, piping and other components.

Through membership and networking within MTI, companies can access solutions to nonproprietary problems of major concern to the process industries. Members can capitalize on the extensive expertise of member company representatives, leverage their technology investment by participating in the direction and results of MTI projects, and utilize MTI’s books, reports, software and video training programs immediately as needed. Benefits to member companies are increased plant integrity, reliability and profitability.

Materials Technology Institute, Inc. 1215 Fern Ridge Parkway • Suite 206 • St. Louis, Missouri 63141–4408 U.S.A. Tel: 314.576.7712 • Fax: 314.576.6078 Email: mtiadmin@mti–global.org • Home Page: http://www.mti–global.org