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2014 ANNUAL REPORT

Collaboration Creates Value

Introduction . . . . . . . . . . . . . .01

Featured Projects . . . . . . . . . . .02

TAC Reports . . . . . . . . . . . . . .04

Annual Highlights . . . . . . . . . . .06

MTI’s Vision . . . . . . . . . . . . . .09

MTI’s Mission . . . . . . . . . . . . .09

Benefits of Membership . . . . . . . .09

Member Companies &

Designated Representatives . . . . .10

Report of the Chair –

Board of Directors . . . . . . . . . .12

Board of Directors . . . . . . . . . . .13

Letter from the Executive Director . . .14

Directors & St . Louis Staff . . . . . . .15

MTI Fellows . . . . . . . . . . . . . .15

Technical Advisory Councils . . . . . .16

Financial Statements . . . . . . . . .18

Membership Dues Information . . . . .21

It was a meeting of old friends, peers in the Chemical Processing Industry participating in an international conference, that launched MTI in 1976. They were some of the very best engineers in the

industry, yet they believed that they could all benefit by putting their minds together to solve problems. By pooling ideas and significant brainpower, they created great value for their own companies. To put it

mildly, the collaborative experts network that they ultimately named MTI caught on eventually.

Thirty-eight years later, member companies representing premiere organizations in 16 countries are participating together on a variety of technical projects, troubleshooting efforts, and training sessions that they can apply in their operations back home. As you will see in the pages of this year’s Annual Report, members around the world continue to achieve significant gains for their organizations by networking and working together to meet challenges and develop better solutions. We invite you to see for yourself how your investment in collaboration is delivering value.

Collaboration in ActionThere are many ways that member companies realize returns on their investments in MTI, but in one way or another, all of them are linked to interacting with others in the organization or gaining rapid access to collaborative work products. Here are a few of the ways MTI works with its member companies to deliver value every year.

Education and Training – Industry specialists and recognized experts share their unique knowledge and practical experience in tailored technical sessions on a wide range of topics, from Fitness for Service and FRP training to Risk Based Inspection seminars and much more.

Knowledge Bank – Decades of ongoing teamwork have built a vault of valuable technical information available to members only via MTI’s website, forums, eBooks, reports and other resources.

Leveraged Funding – Combining the resources of like-minded companies enables MTI to sponsor fast-track projects that solve

industry challenges in a fraction of the time at a fraction of the cost for each member.

Networking Power – Interacting with the best materials science and engineering minds in the business, whether in person or online, provides unique opportunities to tap into this depth of knowledge and learn together.

Research Studies – MTI collaborates with leading laboratories and universities around the world, sponsoring studies that provide valuable technical information on metals, polymers, ceramics, and other areas of member company interest.

Safety and Reliability Solutions – Members have joined forces to develop an evergreen pool of useful information on static and rotating equipment, instrumentation, piping, heat exchangers, and utilities.

Technical Forums – In addition to face-to-face TAC and committee meetings, MTI’s online forum facilitates collaboration between experts that delivers answers to members real-time, 24/7.

Collaboration Creates Value

Materials Technology Institute | 2014 Annual Report | 1

MTI filled another void in the materials engineering world in 2014 when it published The Duplex Stainless Steel Atlas of Microstructures. The book meets the industry’s need for an atlas with high quality, instruc-tive images of duplex stainless steel microstructures.

Duplex stainless steels are replacing 300 series stainless steels as well as more expensive nickel- based alloys for many applications in the processing industries. More and more engineers are specifying these alloys, but high-quality microstructures of acceptable and improperly treated microstructures have not been available.

Material failures can lead to significant problems in the process industries. To help mitigate that risk, 30 MTI member companies collaborated on the project, yielding a teaching tool for members that displays both good and bad microstructures. The atlas

shows the microstructures for many product forms, including plate, sheet, pipe, tube, bar, forgings, castings, and weldments, an important feature since microstructures of different product forms can look quite different. Heat treated microstructures are also included to demonstrate what intermetallics and pre-cipitates look like in duplex stainless steels. The atlas is a useful tool for screening duplex products, evaluat-ing weld procedures, and performing failure analyses.

The large but nimble Project Team, led by Co- champions Hira Ahluwalia and Jim Fritz, designed the scope and objectives of the project, donated the alloy samples, and provided a variety of different welds to bring it all together. “This Duplex Atlas project beautifully illustrates the strength of the MTI organization and member collaborative efforts,” according to MTI Associate Director Heather Stine, who managed the project for MTI.

New Atlas of Microstructures Zooms in on Duplex Stainless Steels

Featured Projects

2 | Collaboration Creates Value

Polymer lined equipment has become more common in the chemical process industry due to its cost effective corrosion resistance to severe chemical service. At the same time, the industry is looking for equipment that can be operated as long as is safely possible.

Performing weld repairs on equipment that has already been exposed to chemicals can be difficult. Chemicals permeate the polymers, and weld repairs can result in extensive bubbling and weak welds that don’t “stick” to the base material, requiring a completely new or relined vessel (at a significant cost).

This is a frequently encountered problem among end users of plastic process equipment, and it has never been systematically studied. There are many standards for plastic welding in new equipment, but no guidelines for welding on exposed polymers. It is also precisely the type of significant challenge that the industry solves by leveraging MTI’s wide-ranging resources.

MTI has collaborated with Swerea KIMAB, a world leader in the discipline of corrosion properties of poly-meric materials, to study the morphological changes of welds on polymers that have been exposed to

chemicals. The goal of the project is to determine how to negate the effects of chemical exposure and perform acceptable welds.

Recently completed Phase I of the project involved exposure of 10 different polymer materials in up to seven different chemical environments for 6-12 weeks. In the first phase, the Project Team determined that the short-term weld factor, which has been considered an industry standard for evaluating the integrity of a polymeric weld, did not have good correlation with the visual and pull test results.

One of the key objectives of Phase II will be to estab-lish quantitative test criteria that can be used in the field to determine if a weld repair is acceptable. The final aim of the project is to formulate procedures that can be used to successfully weld polymers after chemi-cal exposure, providing a new standard in plastic weld repair techniques that could be of tremendous value to MTI member companies.

Polymers Project Examines Weld Morphologies and Evaluation


TAC Reports

In 2013, MTI conducted a survey of participants in its AmeriTAC meetings. The goal was to gather feedback and refine the three annual North America meetings to create maximum value of members. Chair David Barber (The Dow Chemical Company) and Vice Chair Mike Anderson (Syncrude) learned that participants find the structured forum presentations particularly valuable. Member representatives often take the new ideas back home to implement in their own plants or join forces within MTI to develop new industry projects.

During the past year, materials experts shared information on topics ranging from “A Comparison Between Four Different International Design Codes for FRP Vessels” to “Heat Exchanger Tube Inspection Using Two Non-traversing Methods.” MTI is an organization made up of member companies with diverse needs, and AmeriTAC presentations have covered a broad range of interests, such as “Composite Repair for Piping – Design, Analysis,

and Testing,” “Ceramic Fiber Insulation Thermal Properties,” and “Engineering, Installation, Maintenance and Inspection of Rubber and Rubber-lined Equipment in the Process Industry.”

MTI was born out of its members’ desire to share the cost of projects and their wealth of expertise, and research continues to deliver answers to its North American members. Midway through 2014, there were 28 Project Teams driven by AmeriTAC members studying everything from MIC Corrosion of Duplex Stainless Steels to Permeation through Polymers. But it’s not just the number of active projects that is impressive. It’s the enthusiastic participation of MTI members who develop an idea, put it through a process, and apply the study results in their own operations. From PDC meetings to final report presentations, collaboration at AmeriTAC creates value.

Projects and Technical Presentations Drive AmeriTAC


Collaboration with Eindhoven, Netherlands-based labora-tory TNO provided 2014 EuroTAC Meeting participants with a look at new twists on technology. MTI’s annual Eu-ropean meeting, held March 25-26 at TNO’s headquarters, included a tour of the science-focused facility as well as informative and stimulating presentations on a number of pertinent Materials Engineering topics.

This year’s EuroTAC program included technical presenta-tions on FRP Global Standards, Inspection Techniques, Guided Wave for Tank Bottoms, Accelerated Testing to Determine Remaining Lifetime, Heat Resistant Cast Alloys, MTI Flange Project and Polymer Permeability Book Updates, and A Technique for the Evaluation of Toughness of Carbon Steel.

In addition, Natalie Gelder of BASF hosted a special case studies session, where members brought current engineering problems to the group and received helpful, pertinent feedback and input on the problems they presented.

In the annual business meeting, the group elected a new EuroTAC Chair, Dietlinde Jakobi of Schmidt + Clemens and re-elected Gelder as the Vice Chair. Dr. Jakobi, who is R&D Director for member company Schmidt + Clemens Group, hopes to expand MTI’s research activities and projects in Europe by evaluating the specific requests of the European market. EuroTAC has decided to hold two meetings annually, with the first fall EuroTAC meeting November 17-18, 2014 in Copenhagen.

New Leadership and Ideas at EuroTAC

No sooner had the AsiaTAC Steering Committee completed its successful Annual Meeting in Shanghai in October 2013, than it was planning a March 2014 meeting in Taiwan. The Committee’s considerable effort paid off in a popular Fitness for Service (FFS) training session and MTI’s second successful Spring AsiaTAC Meeting, held May 15-16 in Chia Yi City, Taiwan. More than 60 people attended the FFS training seminar and AsiaTAC pro- ceedings. Themes concentrated on CPI corrosion issues and Corrosion Under Insulation. Keynote presentations included High Corrosion Resistant Materials for Corrosion Mitigation in Petrochemical Industries: Passive Metals and Super Stainless Steels; Technical Trends of FRP for Chemical Equipment in Japan; and Plastics, Elastomers, and Composite Materials for Chemical Handling – Past, Present, and Future.

The training session and strong technical program, under the leadership of Dr. T.P. Cheng of ITRI, attracted many long time MTI member companies operating in the region, including DuPont, Dow, Air Products, BP, Outokumpu,

Rath Gibson, Asahi-Kasei and Mitsui Chemicals. ITRI, The Corrosion Association of the Republic of China, host CPC Corporation and co-sponsor Formosa Plastics, were in-strumental in planning this special event. The broad range of experience and perspectives of the organizers, presenters, and participants added value to the interactive exchanges and opened the door to future collaboration.

FFS Training Session Highlights AsiaTAC Meetings


Jesse Chen, MTI, with Keynote Speaker Professor Tsai, National Cheng Kung University of Taiwan

EuroTAC 2014 participants gather at TNO’s research facilities in Eindhoven, The Netherlands.

Whitcraft Steps Up to New Role as MTI ChairMTI has built a history of successes on the extra efforts of members who step up and take on leadership roles when needed. The organization is only as effective as the people who lead and contribute to its projects, committees, and Board of Directors. In that spirit of participation, Paul Whitcraft agreed to lead the organization’s Board for three years, a change made seamlessly as Ed Naylor completed his term as Chair in October 2013. Whitcraft, Director of Technology at MTI member company Rolled Alloys, is no stranger to MTI leadership roles, having been a Board member since 2010 and his company’s Designated Repre-sentative since 1995. He has also served on ASTM Inter-national’s Board of Directors and is a member of NACE International, The Corrosion Society, ASM Interna-tional, SAE Inter-national, and the Technical Asso-ciation of the Pulp and Paper Industry (TAPPI). MTI is pleased to have such an experi-enced and versatile new leader of its Board of Directors.


2014 Highlights

MTI Publishes Guide for Repair of Lined EquipmentMTI published an updated version of its Guide for the Repair and Alteration of Lined Equipment by Harold Clem Jr. in association with an MTI Project Team. The 300-plus page guide covers Assessment, Inspection, and En-gineering Analysis; Preparation for Repair or Modification; Bonded Liners; Loose and Non-bonded Liners; Elastomeric Linings; Rotolined Steel Equipment; Dual Laminate Equipment; Sprayed and Baked-on Systems; Temporary versus Permanent Repairs; and Sumps and Trenches. In addition, it contains a full set of Appendices covering Thermalplastic Lining Materials, Rubber Sheet Lining Materials, and much more. The publication is available in electronic (PDF posted in the members-only area at mti-global.org) and in hardcopy formats.

Paul Whitcraft

MTI awarded $5000 each to its 2014 Bert Krisher Memorial Scholarships winners, Zackary Lerch and David Waligorski, both seniors studying Materials Engineering at the Univer-sity of Akron. Paul Manning (Haynes International) and John Aller (MTI) presented the awards at the NACE An-nual Conference in San Antonio, Texas in March.

Committee Members Dale Heffner (Electro Chemical Engineering and Manufacturing), Robert Sinko (Eastman

Chemical), Paul Manning (Haynes International), Kirk Richardson (MTI) and Committee Chair Srini Kesavan (FMC) reviewed the applications of 16 candidates. Some of the applicants elected to have their resumes posted online at mti-global.org, where they can be downloaded by members who are interested in recruiting. The scholarship creates value for MTI member companies by connecting them with the next generation of engineering talent and their new ideas.

2014 MTI Scholarship Winners

MTI sponsored a project with Missouri University of Science and Technology to create a method of testing the erosion of metals due to abrasion in oil sands processing environments. For their Senior Engineering Project, three students, working with Professor Joe Newkirk and MTI Associate Director Emory Ford, developed an apparatus that could withstand abrasion and a protocol to test the wear of different materials. The team developed its own slurry to mimic oil sands, tested three steel alloys (of vari-ous hardness levels) in the harsh environment and analyzed the results. They found that metal samples eroded, but the most important achievement was creating a test model that worked. Ford credited MTI members Syncrude and ATI for their guidance in the effort. The successful project with the MS&T students could lead to future collaboration between MTI and the university, including a similar test on the abrasion of polymeric materials.

MTI Sponsors Study with Senior Engineering Design Class at MS&T

2014 MTI Scholarship Winners (David Waligorski, center-left, and Zackary Lerch, center, right)

Missouri University of Science & Technology Senior Project Design Team with Advisor Emory Ford, MTI (far right),

and Professor Joseph Newkirk (far left)



2014 Highlights

Seminar Focuses on Recent Developments in Duplex Stainless Steels At AmeriTAC 112 in Savannah, Georgia, MTI completed an outstanding “train-the-trainer” seminar focusing on application, standards and quality assurance, and welding of Duplex Stainless Steels with emphasis on events or changes over the last 5 years. The seminar was presented by Poul-Erik Arnvig and Jim Fritz (Outokumpu), John Grubb (ATI), Gary Coates (Nickel Institute) and Paul Whitcraft (Rolled Alloys). The majority of the 36 attendees rated the seminar excellent in a post-seminar survey.

Investigation of Technologies Common to Other IndustriesIn 2011, MTI approved a project to investigate technolo-gies common to other industries. MTI’s goal was to find and explore technologies that have been developed for industries other than the CPI to determine if they have possible application to the CPI. The project consisted of three phases: (1) Identification of perceived needs, (2) Industry survey for potential technical solutions, (3) Identification of candidate solution technologies.

MTI issued the research contractor’s final report in late 2013, and Project Champion Steve Springer of DuPont provided a summary presentation at AmeriTAC 113. The research report provided a list of technical organizations that could partner with MTI in its efforts to address mem-ber priorities, including online/continuous monitoring of equipment integrity, inspection tools and technologies for inaccessible pipelines and vessels, high temperature ma-terials degradation due to changes in surface composition, degradation of polymeric materials of construction, and thermal fatigue in dissimilar metal welds. MTI will continue to consider these and other collaborative research opportu-nities when the combination of resources could add up to substantial value for its members companies.

Welding of Duplex Steels Seminar Leaders (left to right) John Grubb, ATI; Paul Whitcraft, Rolled Alloys; Jim Fritz, TMR

Stainless (representing Outokumpu); Poul-Erik Arnvig, Outokumpu; Gary Coates, Nickel Institute

MTI’s Vision MTI will be the process industries’ first choice for materials technology networking and solutions.

MTI’s MissionMTI maximizes member asset performance by providing global leadership in materials technology to improve safety, reliability, sustainability and profitability.

Benefits of MembershipMTI’s role is increasingly important as materials options expand in number and complexity and as shortages of trained staff constrain operations.

Through membership, companies gain the knowledge they need to better develop, manage, and maintain green–field and retrofit construction projects, leading to greater efficiency, safety, reliability, sustainability and profitability.Benefits: • Rapidandefficientsolutionstoproblems • Accesstoanexpertnetworkthatincludessome

of the world’s foremost materials technologists for immediate and vetted consultation

• Apoolofcooperativeresearchfundingthat multiplies the collected membership dues

• Anopportunitytoselect,scope,andlead projects conducted by others

• Privilegedaccesstointernallydeveloped information and project output

• Asearchabledatabaseofmorethan30years of Forum questions and discussion

MTI also 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.


MTI Teams with CSM to Develop Thermophysical Model for InsulationInsulating materials developed for the aerospace industry may soon gain broader acceptance in the CPI thanks in part to a recent MTI-sponsored modeling project. CPI companies are beginning to consider highly porous ceramic fiber insulations as replacement candidates for firebrick insulations in high-temperature, high-pressure applications. These lightweight materials may prove more effective as insulators compared to dense refractories and firebrick. However, a lack of experimental data and predictive models, especially in high pressure environments, has limited use of these materials in chemical plant applications.

MTI collaborated with the Colorado School of Mines (CSM) on a project to develop a general, applied thermophysical model to predict effective thermal conductivity (keff) of insulation materials and to determine the temperature, pressure, and gas conditions under which natural convection is a possible mode of heat transfer. The primary goal was to build a predictive model for keff under a variety of conditions (especially high pressure gas, which is not readily available in engineering literature) and a quantitative tool to evaluate these insulations as possible materials of construction. Ultimately, the project generated a MATLAB code, written to operate the model and analyze the data. The team validated the model using the available experimental data, including data from literature and laboratory measurements made during this research effort. The MTI Project Team hopes that the new predictive model will allow engineers to design more efficient reactor systems.

ExxonMobil ChemicalBaytown, Texas

J. Houben

Allegheny Technologies Incorporated

Pittsburgh, Pennsylvania J. Grubb

Ascend Performance Materials, LLCHouston, Texas

W. Paden

Air Products and Chemicals, Inc.Allentown, Pennsylvania

M. Lin

AkzoNobelAmsterdam, The Netherlands

E. Naylor

Albemarle CorporationBaton Rouge, Louisiana

H. Wells

DNV GL Dublin, Ohio

C. Jaske

ELLETT Industries Ltd.Port Coquitlam,

British Columbia, CanadaR. Gill

Engineers India LimitedNew Delhi, India

P. Lahiri

The Dow Chemical CompanyMidland, Michigan

G. Liening

DuPont CompanyWilmington, Delaware

S. Springer

Dow Corning CorporationMidland, Michigan

M. Cook

Eastman Chemical CompanyKingsport, Tennessee

R. Sinko

BASF CorporationFlorham Park, New Jersey

B. McCurry

Electro Chemical Engineering and Manufacturing Co.

Emmaus, PennsylvaniaD. Heffner

Asahi Kasei CorporationToyko, JapanM. Nakahara

Air LiquideParis, France

J. Furtado

FMC CorporationPhiladelphia, Pennsylvania

S. Kesavan

Haldor Topsoe A / SLyngby, Denmark

M. J. L. Oestergaard

Haynes International, Inc.Kokomo, Indiana

P. Manning

Hellenic Petroleum S. A.Thessaloniki, Greece

I. Melas

Celanese CorporationDallas, Texas

A. Rakhe

Bayer Technology Services GmbHLeverkusen, Germany

D. Lu

BPLondon, EnglandW. K. Blanchard

ConocoPhillips, Inc Houston, Texas

D. McIntyre

Chevron Corporation Richmond, California

K. Ganschow

Becht Engineering Co., Inc.Liberty Corner, New Jersey

E. Chant

Corrosion MaterialsBaker, Louisiana

R. Muro

HoneywellMorristown, New Jersey

D. Kaye

Jiuli Hi-Tech MetalsHuzhou, Zhejiang, China

D. Lee

Huntsman Petrochemical LLCThe Woodlands, Texas

S. Young

Industrial Technology Research Institute

Chutung, Hsinchu, TaiwanT. P. Cheng

Member Companies and Designated Representatives


Lloyd’s Register Energy Americas, Inc.

Houston, TexasR. Alvarez

Nickel InstituteToronto, Ontario, Canada

G. Coates

Outokumpu, Inc.New Castle, Indiana

P. E. Arnvig

LyondellBasellChannelview, Texas

S. Dufault

Polycorp, Ltd.Elora, Ontario, Canada

D. Nolan

Suncor EnergyCalgary, Alberta, Canada

B. Tkachyk

Tricor Industrial, Inc.Wooster, Ohio

C. Young

P.A. Inc.Houston, Texas

O. Galloway

Praxair, Inc.Danbury, Connecticut

J. White

RathGibsonLincolnshire, Illinois

J. Baumann

The Roberts CompanyWinterville, North Carolina

M. Eshelman

RL IndustriesFairfield, OhioB. Linnemann

Roben Manufacturing Co., Inc.Lakewood, New Jersey

K. Wyrough

Mitsui Chemicals, Inc.Tokyo, JapanH. Matsuda

VictaulicEaston, Pennsylvania

M. Sewell

Webco Industries, Inc.Sand Springs, Oklahoma

B. Bieber

TOTAL SAParis, FranceF. Dupoiron

TITAN Metal FabricatorsCamarillo, California

J. Muscarella

Syncrude Canada Ltd.Fort McMurray, Alberta, Canada

M. Anderson

Titanium Fabrication Corp.Fairfield, New Jersey

T. Bartley

Sandvik Materials TechnologySandviken, Sweden

M. Senatore

Rolled AlloysTemperance, Michigan

P. Whitcraft

SABICRiyadh, Saudi Arabia

H. Schrijen

Saudi International Petrochemical Company

Jubail Industrial City, Saudi ArabiaA. Biggs

SIMONA AmericaKirn, GermanyJ. Ploskonka

Schmidt+Clemens GmbH+Co KGLindlar, Germany

D. Jakobi

Quadrant Engineering Plastic Products

Reading, PennsylvaniaA. Rickert

NobelCladBoulder, Colorado

M. Blakely

NOVA Chemicals CorporationCalgary, Alberta, Canada

G. Donald

Sonomatic LimitedCheshire, United Kingdom

D. Hurst

Stress Engineering Services, Inc.Mason, OhioB. Schulze


Most importantly, we continue to have good attendance and strong participation at our TAC meetings. Our mem-bers continue to see the added value in direct participation and collaboration in project development and networking. The more we put in as individuals and member companies, the more we all receive in return from MTI.

We can’t simply rest on our accomplishments and expect our success to continue without effort or change. Our Board recognizes that each year, every company is making a decision about where they will get the desired return on their investment and if paying their membership fee to MTI satisfies their criteria. MTI must continue to deliver high value to our members. To meet that need, we must expand our ability to provide rapid access to materials technology information and expertise and improve our platform for the timely generation of solutions to specific materials technology issues.

The MTI leadership and staff can provide the structure and tools, but the organization depends on the willingness of member companies to permit their personnel to share their ingenuity and creativity to collectively identify the future path of MTI.

I am grateful for the opportunity to give something back to MTI. I encourage all members to consider raising their organization’s level of involvement. Build support for MTI within your organization by getting co-workers involved. Share your ideas on how to make MTI more valuable to your organization.

Paul Whitcraft — Rolled Alloys Chair, Board of Directors


Although I have been attending MTI meetings since about 1985, my participation on the Board of Directors has caused me to think more about MTI from the aspect of its collaborative nature.Early on, my involvement was completely that of an individual learning about the CPI and how my company (Carpenter

Technology at that time) could benefit. I was focused on “taking” from MTI.

Eventually I learned that from time to time, my work experience was beneficial to others. My focus further shifted when I became involved in project development efforts, many of which wouldn’t benefit my organization directly, but would benefit the overall MTI community. This gradual change in perspective is natural within the MTI collaborative community.

Now, as a member of the Board of Directors, I have spent time reflecting on what MTI has become, and I am more focused than ever on identifying what is best for the MTI organization as we look to the future.

As we approach our 38th anniversary, MTI is as strong as ever. We are near our peak company membership. We have a number of projects in progress, and our PDCs are generating new project ideas every meeting. Our EuroTAC and AsiaTAC chapters are also very productive and are creating and managing projects of their own design. MTI has a talented and knowledgeable staff. We are fortunate to have John Aller as our Executive Director who brings broad experience, creativity, and unbridled enthusiasm for MTI’s future.

Report of the Chair Board of Directors

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:

Paul E. ManningDirector, CRA Marketing and Business DevelopmentHaynes International, Inc.Kokomo, Indiana

Maria Jose Landeira Oestergaard, BOD Vice Chair

Principal Engineer, Senior Materials SpecialistHaldor Topsoe A/SLyngby, Denmark

Edward R. NaylorSenior Materials Engineering Associate AkzoNobelAmsterdam, The Netherlands

Eileen ChantManager of Technology Development & SupportBecht Engineering Co., Inc. Liberty Corner, New Jersey

Standing, Left to Right:

Dale K. HeffnerVice PresidentElectro Chemical Engineering & Manufacturing Co. Emmaus, Pennsylvania

Michael Anderson, AmeriTAC Vice Chair, BOD Ex-Officio

Area Leader – Materials Inspection & Engineering ServicesSyncrude Canada Ltd.Fort McMurray, Alberta, Canada

Paul K. Whitcraft, BOD ChairDirector of Quality Safety & EngineeringRolled AlloysTemperance, Michigan

Steven P. SpringerSenior Consultant, Materials EngineeringDuPont CompanyWilmington, Delaware

Eugene L. LieningManufacturing & Engineering ConsultantThe Dow Chemical CompanyMidland, Michigan

David Barber, AmeriTAC Chair, BOD Ex-Officio

Senior Materials Engineering AssociateThe Dow Chemical CompanyMidland, Michigan

Robert SinkoAssociate Materials EngineerEastman Chemical CompanyKingsport, Tennessee

Not Pictured:

Dietlinde Jakobi, EuroTAC Chair, BOD Ex-Officio

Director Research & Development Services Schmidt + Clemens GroupSchmidt+Clemens GmbH+Co KGLindlar, Germany

Srini Kesavan Principal EngineerFMC CorporationPhiladelphia, Pennsylvania

Kelly E. WyroughDirector of Technical ServicesRoben Manufacturing Co., Inc.Lakewood, New Jersey

Henry Ye, AsiaTAC Chair, BOD Ex-OfficioMaterials Engineering ConsultantDuPont Engineering and Technology Wilmington, Delaware



toward a good conclusion. This collaboration is creating high value projects for our members, with six or eight of these projects ready to go to publishing in the next few months!

For many years, MTI has supported Stainless Steel World Conferences, which are hosted by the publishing and communications organization KCI, headquartered in the Netherlands. We have increased our collaboration with KCI by agreeing to jointly sponsor a “Managing Aging Plants” Conference & Expo in Germany in March, 2015. This effort will produce a conference of vital importance to our producer and supplier member companies, with many of them participating as speakers, panelists, or exhibitors. Bringing the MTI community and potential members together in this event will create significant value for our membership!

MTI has been meeting with both the Japan Society of Corrosion Engineers (JSCE) and the Society of Chemical Engineers, Japan (SCEJ) on joint projects for translating selected MTI documents into Japanese and selected documents of these Japanese engineering societies into English. This collaboration is intended to support our Japanese members and make outstanding technical work on relevant topics done in Japan available to our entire membership. This effort will create high value at a low cost!

The ability and willingness for MTI to collaborate both internally and externally is leveraging our efforts to return high value to our members. We will continue to focus on ways to increase and improve our collaboration.

John Aller Executive Director

The theme of our Annual Report is “Collaboration Creates Value.” Webster defines collaboration as, “working jointly with others or together, especially in an intel-lectual endeavor.” Since I am still relatively new in my role as Executive Director, I have been looking for instances of collabo-ration across the full spectrum of

MTI interactions. What I have found has been gratifying. MTI is a very collaborative organization, and that collabo-ration is resulting in value being created for our member organizations! Let me describe a few of the collaborative activities going on within the organization.

I am very pleased to see that our staff enjoy strong working relationships. One of many examples is that we are using several channels to communicate positive things about MTI to our membership and to the broader chemical process industry. Our Associate Directors have volunteered to iden-tify subjects of interest to the respective audiences and draft the technical communication articles, whether it be for our website, a news release, a magazine article, or our own MTI Newsletter. Our Marketing Director identifies the opportu-nities and venues to provide the communication, puts the articles into the final form, and publishes them. Staff col-laboration is creating value for our membership!

There are a myriad of examples of representatives from our member companies collaborating with MTI staff and contractors to deliver projects of outstanding value. The projects are selected based on the interests and needs of the member organizations and led by member representative project champions. The content of the projects is shaped by the member representatives, contractors are selected based on their subject matter knowledge and capability, and the staff person assigned to the project is responsible to handle the administrative details and keep the project moving

Letter from the Executive Director

Pradip Khaladkar — 2014

James M. Macki — 2011

William C. Fort III — 2010

W.B.A. (Sandy) Sharp — 2006

Robert A. McTamaney — 2006

Greg Kobrin — 2005

George Elder — 2004

Directors & St. Louis Staff

MTI Fellows

Seated Left to Right:

Bill WatkinsAssociate Director

Debby EhretOperations Director

John AllerExecutive Director

Emory FordAssociate Director

Standing Left to Right:

Jesse ChenAssociate Director

Katherine ReineckeAdministrative Assistant

Randy ScheelAssociate Director

Heather StineAssociate Director

Kirk RichardsonMarketing Director

Lori ElginAdministrative Assistant


Warren Pollock — 2004

Robert Puyear — 2002

Sheldon Dean — 2001

Paul Dillon — 2001

Galen Hodge — 2001

Bert Krisher — 2001

Pradip Khaladkar of DuPont Named MTI Fellow

Pradip Khaladkar, PE at the DuPont Company, received the Materials Technology Institute’s Fellow award and designation at MTI’s summer AmeriTAC 114 meeting in Denver, Colorado in June 2014. A pioneer, innovator and driver in the development of numerous polymer projects, Khaladkar has served as a resource advisory group leader and on MTI’s Board of Directors. Khaladkar is MTI’s 13th Fellow.

The Technical Advisory Councils, composed of one representative of each member company, solicit project ideas, define projects, and recommend projects for approval by the Board of Directors.

David Barber, AmeriTAC Chair 1

Senior Materials Engineering AssociateThe Dow Chemical Company

Michael Anderson, AmeriTAC Vice Chair 1, 2, 3

Area Leader R&D - Reliability & Performance ImprovementSyncrude Canada Ltd.

Henry Ye, AsiaTAC Chair 2

Materials Engineering & Technical InspectionDuPont Company

Rao Guangbin, AsiaTAC Co-Vice Chair 2

Materials Engineering Technical InspectionBASF Corporation

Ryan Yang, AsiaTAC Co-Vice Chair 2

Materials Engineer, AsiaAir Products and Chemicals, Inc.

Dietlinde Jakobi, EuroTAC Chair 1, 2, 3

Director Research & Development Services Schmidt + Clemens GroupSchmidt+Clemens GmbH+Co KG

Natalie Gelder, EuroTAC Vice Chair 3

Materials Engineer Technical Inspection & Materials Engineering & MaintenanceBASF Corporation

Al-Hazemi Ali Abdullah 2

Director Material & Corrosion SectionSABIC

Poul-Erik Arnvig 1, 3

Vice President Global Market DevelopmentOutokumpu, Inc.

Jim Baumann 1, 2, 3

Director of CPI SalesRathGibson

Bill Bieber 2, 3

Director of Business DevelopmentWebco Industries, Inc.

Michael Blakely 1

Global Director of Business DevelopmentNobelClad

W. Keith Blanchard 1

Senior Corrosion/Materials AdvisorBP

Nils Boehle 3

Manager, Product & Quality AssuranceAllegheny Technology Incorporated

Paul Bosanko 3

CPI Market Manager EuropeHaynes International Inc.

Clive Breeden 3

Senior Corrosion/Materials AdvisorBP

Gregor Bueche 3

Europe Linings Sales ManagerQuadrant Engineering Plastic Products

Eileen Chant 2, 3

Manager of Technology Development & SupportBecht Engineering Co., Inc.

Dior Chen 2

Sales EngineerHaynes International Inc.

Tzu-Ping Cheng 1, 2, 3

Research Supervisor, Department of Advanced Electrochemistry and Corrosion Prevention ResearchIndustrial Technology Research Institute

Ser-Hor Chong 2

Materials EngineerExxonMobil Chemical

Daniel Christian 3

Director Oil, Gas, Chemical & Power MarketsVictaulic

Gary Coates 1

ConsultantNickel Institute

Marc Cook 1, 3

Reliability EngineerDow Corning Corporation

Matt Curtis 1, 2

Product Development and Technical Support ServicesSIMONA America Inc.

Preeda Dansirisomboon 2

Head of Asset Lifecycle ManagementBayer Technology Services GmbH

Vinay Deodeshmukh 1

Market ManagerHaynes International Inc.

George Donald 1, 2, 3

Mechanical Engineer, Regional MetallurgyNOVA Chemicals Corporation

Scott Dufault 1, 2

Principal Materials EngineerLyondellbasell

Francois Dupoiron 1, 2, 3

Materials and Corrosion ExpertTOTAL SA

Hasse Eriksson 3

Enterprise Customer ManagerDNV GL

Milton Eshelman 1, 2, 3

Senior Design EngineerThe Roberts Company

Robert Freed 1

Senior Consultant, Materials EngineeringDuPont Company

Jader Furtado 1, 2, 3

Expert - R&D Physical MetalluryAir Liquide

Otis Galloway 1, 2, 3

PresidentP.A. Inc.

Kevin Ganschow 1, 2, 3

Materials EngineerChevron Corporation

Justinn General 1, 2, 3

Regional Metallurgist - HoustonRolled Alloys

Bob Gill 1, 2, 3

Vice President, SalesEllett Industries Ltd.

John Grubb 1

Manager Product Technology - DevelopmentAllegheny Technology Incorporated

Christoph Hantsch 3

Specialist Inspection Integrity MetallurgyLyondellbasell

Dragon Hao 2

Technical & Development ManagerSandvik Materials Technology

Larry Haubner 1

Manager of Business DevelopmentTitan Metal Fabricators

Dale Heffner 1, 2, 3

Vice PresidentElectro Chemical Engineering and Manufacturing Co.

Mark Hilton 1, 2, 3

Engineering Fellow Materials - CorrosionAscend Performance Materials LLC

John Houben 3


John Huang 2

SalesmanAllegheny Technology Incorporated

Curtis Huddle 1

Materials EngineerEastman Chemical Company

Don Hurst 1

Development Manager, USASonomatic Limited

Trevor Hutley 1, 2, 3

Research DirectorSaudi International Petrochemical Company

Carl Jaske 1

Senior Principal EngineerDNV GL


1 AmeriTAC 2 AsiaTAC 3 EuroTAC

Technical Advisory Councils

Dan Kaye 1, 2, 3

Staff Engineer - ReliabilityHoneywell

Srini Kesavan 1, 2, 3

Principal EngineerFMC Corporation

Yong-Joo Kim 1

Vice President TechnologyWebco Industries, Inc.

Rocky Kuykendall 1, 2, 3

Vice President of EngineeringTitanium Fabrication Corp.

Pinaki Lahiri 1, 2, 3

General ManagerEngineers India Limited

Denny Lee 2

Deputy General ManagerJiuli Hi-Tech Metals

Zhang Licheng 2

Managing Director ChinaNickel Institute

John Lilley 1

General ManagerSonomatic Limited

Minfa Lin 1, 3

Lead Materials EngineerAir Products and Chemicals, Inc.

Jan Links 3

Senior Materials SpecialistThe Dow Chemical Company

Brian Linnemann 1, 2, 3

Engineering ManagerRL Industries

Xiaomin (John) Liu 1

President & CEO of JIULI USAJiuli Hi-Tech Metals

David Lu 1

Materials and Corrosion SpecialistBayer Technology Services GmbH

Hiroyasu Matsuda 1, 2, 3

Director, Safety & Environment DivisionMitsui Chemicals, Inc.

Zach McCann 2

Regional Manager, Asutralasia and South East AsiaSonomatic Limited

Ben McCurry 1

Materials & Inspection EngineerBASF Corporation

Dale McIntyre 1, 2, 3

Consultant MetallurgyConocoPhillips, Inc.

Ioannis Melas 1, 2, 3

Metallurgical Engineer, Inspection DepartmentHellenic Petroleum S.A.

Masao Nakahara 1, 2, 3

ConsultantAsahi Kasei Corporation

Ed Naylor 1

Senior Materials Engineering AssociateAkzoNobel

Maria J. L. Oestergaard 1, 2, 3

Principal Engineer, Senior Materials SpecialistHaldor Topsoe A/S

Stephane Pauly 3

Director of Sales - EuropeNobelClad

Shou Peng 2

Manager, Asia R&D CenterVictaulic

Jorge Perdomo 1


Ashok Rakhe 1, 2, 3

Fellow EngineerCelanese Corporation

Adam Rickert 1

America’s Linings Sales ManagerQuadrant Engineering Plastic Products

Jacob Rodriguez 1

Technical Sales EngineerCorrosion Materials

Harry Schrijen 1, 3

Advisor Material & WeldingSABIC

Bernard Schulze 1, 2, 3

Staff ConsultantStress Engineering Services

Knuth Schweier 3

Head of Corrosion & Inspection Management DepartmentBayer Technology Services GmbH

Tony Scribner 1

Senior Advisor IIBecht Engineering Co., Inc.

Marcelo Senatore 1

Global Technical MarketingSandvik Materials Technology

Mark Sewell 1

Senior Engineer - Materials TechnologyVictaulic

James Shipley 3

Technical Marketing ManagerSandvik Materials Technology

Robert Sinko 2, 3

Associate Materials EngineerEastman Chemical Company

Chang-Ching Sun 2

Director Market Development Business Area Stainless APACOutokumpu, Inc.

Peiwu Sun 2

Mechanical Integrity Team LeaderDow Corning Corporation

Brian Tkachyk 1, 2, 3

Maintenance and Reliability ServicesSuncor Energy

Jan van de Wetering 3

Senior Consultant – Corrosion TechnologyAkzoNobel

Joerg Wagner 3

European Sales ManagerTitan Metal Fabricators

Poco Wang 2

Technical AdvisorDNV GL

Yunxiang (Winnie) Wang 2

Senior Materials/Corrosion EngineerBP

Nigel Ward 3

Director, Promotion & Market DevelopmentNickel Institute

Hardin Wells 1, 2, 3

Sr. Advisor- Mechanical Tech ServiceAlbemarle Corporation

James White 1, 2, 3

Associate DirectorPraxair, Inc.

Kelly E. Wyrough 1, 2, 3

Director of Technical ServiceRoben Manufacturing Co., Inc.

Zha Xiaochun 3

ManagerJiuli Hi-Tech Metals

Daniel Yiptong 1, 2

Technical ManagerPolycorp, Ltd.

Chuck Young 1, 2, 3

Business Development ManagerTricor Industrial Inc.

Nina Young 1

Staff Engineer, Inspection/MetallurgicalHuntsman Petrochemical LLC

Nick Zentil 2

General Manager TITAN WuxiTitan Metal Fabricators

Bin Zhang 2

Managing Director - ChinaNobelClad

Wei Zhang 2

Lead of Inspection TeamAkzoNobel

Ling Zhou 2

PCE Engineering SpecialistThe Dow Chemical Company

1 AmeriTAC 2 AsiaTAC 3 EuroTAC


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STATEMENTS OF ACTIVITIES JUNE 30, 2014

UNRESTRICTED NET ASSETS Revenues Membership dues $ 1,802,630 Interest 41,829 Product sales and royalty income 15,290 Meeting fees 55,470 Investment loss 13,971 Total Support and Revenue 1,901,248

Expenses Program Services Salaries and payroll costs 988,454 Projects 486,252 AmeriTAC travel and meetings 140,700 AsiaTAC travel and meetings 99,887 EuroTAC travel and meetings 18,345 Total Program Services 1,733,638 Supporting Services Administrative 164,388 Communications 53,012 Marketing and recruiting 56,202 Website costs 7,785 Total Supporting Services 281,387 Total Expenses 2,015,025 Total Decrease in Net Assets 113,777 Net Assets, Beginning of Year 1,770,184 Net Assets, End of Year $ 1,656,407

See accompanying notes to financial statements.

Financial Statements – June 30, 2014

STATEMENTS OF FINANCIAL POSITION JUNE 30, 2014

ASSETSCURRENT ASSETS Cash and cash equivalents $ 640,638 Investments – Certificates of deposit 1,722,982 Accounts receivable 151,050 Accrued interest receivable 9,975 Publications inventory 106,138 Prepaid expenses and deposits 13,156 Total Current Assets 2,643,939

PROPERTY AND EQUIPMENT Office equipment at cost 107,583 Less accumulated depreciation 91,938 Total Property and Equipment, Net 15,645

TOTAL ASSETS $ 2,659,584

LIABILITIES AND NET ASSETS

CURRENT LIABILITIES Accounts payable and accrued liabilities $ 72,302 Deferred Revenue 930,875 Total Current Liabilities 1,003,177

NET ASSETS Unrestricted 1,656,407 Total Net Assets 1,656,407

TOTAL LIABILITIES AND NET ASSETS $ 2,659,584


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STATEMENTS OF CASH FLOWS JUNE 30, 2014

Cash Flows from Operating Activities Decrease in net assets $ 113,777 Adjustments Depreciation 17,825 Change in fair value of investments 14,066 Decrease in reserve for inventory obsolescence 5,553 (Increase) decrease in assets Accounts receivable 128,641 Prepaid Expenses 2,886 Other receivables 3,022 Publication inventory 3,597 Increase (decrease) in liabilities Accounts payable 162,903 Deferred revenues 59,120 Net Cash Used by Operating Activities 316,130Cash Flows from Investing Activities Purchase of property and equipment 2,326 Redemption of investments – certificates of deposit 808,000 Purchase of investments – certificates of deposit 421,983 Net Cash Provided by Investing Activities 383,691 Net Increase in Cash and Cash Equivalents 67,561 Cash and Cash Equivalents, Beginning of Year 573,077 Cash and Cash Equivalents, End of Year $ 640,638


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Independent Auditors’ Report

Board of DirectorsMaterials Technology Institute, Inc.

We have audited the accompanying financial statements Materials Technology Institute Inc. (the Organization), which comprise the statement of financial position as of June 30, 2014, and the related statements of activities and cash flows for the year then ended, and the related notes to the financial statements.

Management’s Responsibility for the Financial StatementsManagement is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ ResponsibilityOur responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accor-dance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circum-stances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant 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 suffi-cient and appropriate to provide a basis for our audit opinion.

OpinionIn 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, 2014, and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Kiefer Bonfanti & Co. LLPSt. Louis, MOSeptember 3, 2014

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publication. Inventories are stated at the lower of cost or market with cost being determined by the first–in, first–out method. Organization management has ascertained that the inventory of publications is subject to obsolescence due to advances in technology and other factors affecting the industries it serves. Accordingly, management has elected to establish a reserve for obsolescence with respect to ascertaining the realizable fair market value of its publications.

Accounts Receivable: Accounts receivable are stated at the amount management expects to collect from balances outstanding at year end. Management of the Organization evaluates the collectability of individual accounts. At June 30, 2014, the Organization determined that accounts receivable balances are fully collectible, and therefore, a valuation allowance is not considered necessary.

Income Taxes: The Organization is exempt from income taxes under Section 501(c)(6) of the Internal Revenue Code.

Financial accounting standards for uncertain tax positions prohibit financial statement recognition of the impact of a tax position if the position is not “more likely than not” to be sustained on audit, based on the technical merits of the position. The standards also provide guidance on measurement, recognition, classification, transition, and disclosure requirements for uncertain tax positions. The Organization’s federal Form 990 for tax years 2011 and later remain subject to examination by taxing authorities.

Subsequent Events: The Company has evaluated subsequent events through September 3, 2014, the date which the financial statements were available to be issued, for possible additional recognition or disclosure.

2) INVENTORIES

Inventories at June 30, 2014 consisted of the following:

Finished publication inventory $ 150,257 Less reserve for obsolescence 44,119 Total Inventories $ 106,138

3) CONCENTRATION OF RISK

Financial instruments that potentially subject the Organization to concentrations of credit risk consist principally of temporary cash investments. The Organization places its temporary cash and long term investments with financial institutions and limits the amount of credit exposure to any one financial institution. As of June 30, 2014, the Organization’s temporary cash and certificates of deposit were within insured limits.

4) FAIR VALUE MEASUREMENTS

Financial Accounting Standards establish a framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy under the standards are described as follows:

Level 1 Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets.

Level 2 Inputs to the valuation methodology include:

• Quotedpricesforsimilarassetsorliabilitiesinactivemarkets;

• Quotedpricesforidenticalorsimilarassetsorliabilitiesininactive markets;

• Inputsotherthanquotedpricesthatareobservableforthe asset or liability;

Notes to Financial Statements – June 30, 20141) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The summary of significant accounting policies is presented to assist in understanding the Organization’s financial statements. These accounting policies have been consistently applied in the preparation of the financial statements.

Organization: The Organization was incorporated under the name Materials Technology Institute of the Chemical Process Industries, Inc. on December 13, 1976 pursuant to the laws of the State of New York as a tax exempt organization under the Internal Revenue Service Code Section 501(c)(6) to engage principally in the business of sponsoring research projects for the chemical process industries. Effective December 4, 2003, the Organization changed its name to Materials Technology Institute, Inc. The member companies are located in various countries.

Basis of Accounting: The financial statements of the Association have been prepared on the accrual basis of accounting.

Use of Estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

Financial Statement Presentation: A description of the three net asset categories follows:

Unrestricted Net Assets — Includes resources available for the support of operations, which have no donor–imposed restrictions.

Temporarily Restricted Net Assets — Includes resources for which donor–imposed restrictions have not been met.

Permanently Restricted Net Assets — Includes resources for which donor–imposed restrictions are permanent.

There were no temporarily or permanently restricted net assets at June 30, 2014.

Cash and Cash Equivalents: The Organization considers all highly liquid investments with an initial maturity of twelve months or less when purchased to be cash equivalents.

Investments: The Organization’s Board of Directors maintains a policy of limiting its investments to certificates of deposits with maturities of one year or longer. Investments are presented in the statements of financial position at fair value. Unrealized gains and losses are included in the change in net assets in the accompanying statements of activities.

Property and Equipment: Property and equipment are stated at cost, or fair market value if donated, less accumulated depreciation. Depreciation is pro-vided on the straight–line method over the following estimated useful lives.

Office equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 – 7 years

Depreciation expense for the years ended June 30, 2014 was $17,825.

Expenditures over $1,000 for purchases and for major renewals and betterments that extend the useful lives of property and equipment are capitalized. Expenditures for repairs and maintenance are charged to expense as incurred.

Revenue Recognition and Deferred Income: Revenue is recognized in the period the income is earned. Membership income is typically received in advance. Accordingly, membership income is earned ratably over the period, with the unearned portion shown as deferred income at the date of the Statement of Financial Position.

Inventories: The Organization maintains an inventory of publications which report the results of its research projects. Direct costs of editing and production are capitalized and a unit value is established for each

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• Inputsthatarederivedprincipallyfromorcorroboratedbyobservable market data by correlation or other means.

If the asset or liability has a specified (contractual) term, the level 2 input must be observable for substantially the full term of the asset or liability.

Level 3 Inputs to the valuation methodology are significant, unobservable inputs.

The asset or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.

The inputs or methodologies used for valuing investments may not be an indication of the risk associated with investing in those securities. Investments in collective investment funds are valued at the net asset value per unit on the valuation date. Furthermore, the Organization believes its valuation methods are appropriate and consistent. The use of different methodologies or assumptions could result in a different fair value measurement at the reporting date.

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 service requirements. Subject to statutory limits, qualifying employees may elect to defer a portion of their salary. The Organization currently matches 100% of the employee deferrals not to exceed 5% of compensation. Matching contributions were $34,385 for the year ended June 30, 2014.

6) OPERATING LEASES

As of June 30, 2014, the Organization leases its office facilities and certain office equipment under non–cancelable operating leases for which expire between June 2015 and June 2017. The future minimum lease payments under the leases are as follows:

Years Ending June 30, Amount 2015 $ 22,559 2016 19,570 2017 19,739 Total Future Minimum Lease Payments $ 61,868

Leasing expense for office facilities and for office equipment was $17,660 and $3,637, respectively, for the year ended June 30, 2014.

7) COMMITMENTS

As of June 30, 2014, the Organization is a party to several research projects requiring estimated payments of approximately $676,458 over the remaining life of the existing projects.

8) FOREIGN ACCOUNTS

The Organization has contracted Taiwan Corrosion Association to perform administrative functions and to oversee the financial operations in Taiwan. These functions include management of a Taiwan bank account that is held to conduct financial transactions in the local currency. The balance of this account at June 30, 2014, was $7,648.

Schedule of Annual Membership Dues for 2015Annual Sales Year 2014(US$ Billions) Dues – US$< 0.2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 12,1000.2 – 0.4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 16,7000.4 – 0.8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 21,1000.8 – 1.5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 25,6001.5 – 3.0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 30,3003.0 – 6.0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 34,8006.0 – 12.0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 39,20012 – 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 43,80025 – 50 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 48,40050 – 100 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 52,900100 – 200 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 57,500200 – 400 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 62,100400 – 800 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 66,500800 – 1,500 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 71,100

Basis for Assessing Company’s Membership DuesDues for membership are generally based upon the total sales of the member company and its affiliates. Dues for specific classes of members are as follows:

Dues for members will be determined from the established dues schedule and will be calculated on the basis of the most recent audited Corporate sales. For privately held corporations, the total corporate sales of the units must be certified by an officer.

The Board of Directors may make exceptions to this policy in cases where, in its judgment, the affiliates of the applicant, even though they are related to the chemical processing indus-try, cannot reasonably be expected to benefit from the mem-bership in MTI.

Association memberships will be considered on a case–by–case basis, with regard to acceptance, dues levels, and conditions of membership.

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

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Materials Technology Institute, Inc.1215 Fern Ridge Parkway • Suite 206 • St. Louis, Missouri 63141–4408 U.S.A.

Tel: 314.576.7712 • Fax: 314.576.6078Email: mtiadmin@mti–global.org • Home Page: http://www.mti–global.org

About Materials Technology InstituteThe 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.

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