24
2009 AnnuAl RepoRt Global Voices. Global Value.

Global Voices. Global Value. - MemberClicksexplain (1) the manufacturing of glass lined equipment in China, (2) a method of auditing glass lined equipment manufacturers, (3) a method

  • Upload
    others

  • View
    0

  • Download
    0

Embed Size (px)

Citation preview

Page 1: Global Voices. Global Value. - MemberClicksexplain (1) the manufacturing of glass lined equipment in China, (2) a method of auditing glass lined equipment manufacturers, (3) a method

2 0 0 9 A n n u A l R e p o R t

Global Voices. Global Value.

Page 2: Global Voices. Global Value. - MemberClicksexplain (1) the manufacturing of glass lined equipment in China, (2) a method of auditing glass lined equipment manufacturers, (3) a method

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

Annual Highlights . . . . . . . . . 02

MTI’s Vision . . . . . . . . . . . . 06

Benefits of Membership . . . . . . 06

MTI’s Mission . . . . . . . . . . . 06

Report of the Chairman –

Board of Directors . . . . . . . . 07

Report of the

AmeriTAC Chairman . . . . . . . 08

Report of the

AsiaTAC Chairman . . . . . . . 09

Member Companies &

Designated Representatives . . . 10

Report of the

EuroTAC Chairman . . . . . . . 12

Executive Director’s Letter . . . . . 13

Board of Directors . . . . . . . . . 14

Directors . . . . . . . . . . . . . . 15

St . Louis Staff . . . . . . . . . . . 15

Technical Advisory Council . . . . 16

Financial Statements . . . . . . . 18

Membership Dues Information . . . 21

Addressing Regional priorities

Maximizing resources through

a global network of materials specialists.

Page 3: Global Voices. Global Value. - MemberClicksexplain (1) the manufacturing of glass lined equipment in China, (2) a method of auditing glass lined equipment manufacturers, (3) a method

MtI has long had a worldwide membership and outlook. But now, more than ever, our members can ensure that our efforts meet their regional needs.

With the full implementation of AsiatAC and eurotAC, the framework is now in place to help member organizations in these areas focus our studies, training, and other activities on regional issues.

Whether it’s in these new regions, or in the Americas, MtI is adapting to current economic realities by using online technology to help those with limited travel budgets attend meetings. And as senior personnel retire, MtI’s global forums increasingly serve as the institutional memory for entire industries.

the only reason our membership has remained so stable, even through these challenging times, is the exceptional value our members receive.

with Global Resources

01

Page 4: Global Voices. Global Value. - MemberClicksexplain (1) the manufacturing of glass lined equipment in China, (2) a method of auditing glass lined equipment manufacturers, (3) a method

02 | 03

AsiaTAC 2009The third annual meeting of MTI in China, formerly known as SinoTAC, has been renamed AsiaTAC to reflect the importance of the entire Asia region to MTI. This meeting was again held in Shanghai, China on September 23 – 25, 2009.

The first day was devoted to a seminar on the metallurgy of stainless steels. This seminar was a discussion of all the various grades of stainless steels including Ferritic, Austenitic, Duplex, Martensitic, and Precipitation Hardening. In each section the effect of chemistry on the metallurgical structure and properties was discussed. The sections were presented by persons active in the stainless steel industry including the Nickel Institute.

The second day the program consisted of several panel discussions concerning topics of interest to our members. These panel discussions included the following subjects:• Equipment fabrication and inspection, manufacturer

qualification.• Nickel based alloys, availability and application in Asia.• Corrosion under insulation, recognition and prevention.• Gasket vendor qualification in Asia.

The panel discussions are intended to indicate the state of the art in Asia today and can then function as a mechanism to form a project team to investigate what might be done to improve the situation or answer questions that will develop a better understanding.

Also on the second day was a Forum and Information Exchange session where members can present their specific problems and get responses from the other members in attendance. This activity has been of significant importance to our members in other parts of the world.

On the third day the project teams already functioning in China presented a review of their activity. Included in this session were:• US/China Materials Comparison Forum• Fastener Qualification in Asia• Glass Lined Equipment Qualification in AsiaThere was also a review of activity in several active projects in the US and a session to explain how to use the MTI web site to their advantage.

This meeting was the largest one to date.

EuroTACThe sixth annual EuroTAC meeting was held in Cologne, Germany on April 21-23, 2009. The full 2 day schedule included 29 attendees who participated in these discussions:• Development of project ideas for Metal Dusting• Properties of Sprayed Coatings – 3 presentations• NMR for analysis of O-rings• Reactive Metals Seminar• Discussion of EuroTAC structure for the future

Annual Highlights

The 2009 EuroTAC was held in Cologne, Germany.

Page 5: Global Voices. Global Value. - MemberClicksexplain (1) the manufacturing of glass lined equipment in China, (2) a method of auditing glass lined equipment manufacturers, (3) a method

Global Voices. Global Value.

Three AmeriTAC MeetingsHighlights from MTI’s three AmeriTAC meetings include: • Average 69 attendees from 34 member companies• 135 forum topics discussed• Special presentation topics included: • Stainless Steel Seminar • Guidelines for Assessing Fire and Explosion

Damage Second Edition • Sensor Technology and Panel Discussion • Techniques to Measure Hydrogen Content in

Advanced Alloys • Initiative to Develop a Corrosion Engineering

Degree Program • The Impact of Micro-Analytical Technology

On Measurement on Science Applications • NIST Update from the Materials Reliability

Division, Structural Materials Group• Conducted Project Team Meetings as GoToMeetings • AmeriTAC 98 – 10 Project Team Meetings • AmeriTAC 99 – 18 Project Team Meetings • Stainless Steel Seminar conducted as GoToWebinar• Funded 6 new projects• Eight newly formed projects

Reliability of Fixed Equipment and PipingThis two year project began in 2008, and is now on target to be completed in mid-2010. The manual, like its predecessor, the Instrumentation Reliability Manual will be part of a broad reliability program. It will support managers, professionals, operators, and technicians to increase plant availability and drive maintenance costs down to optimal levels.

Advanced Metal Dusting / EuroTAC 2009Metal Dusting remains a hot topic within MTI. During the EuroTAC 2009 meeting a discussion was held concerning a possible technique for determining the onset of metal dusting. A potential project to work on determining the mechanism of metal dusting was also considered.

GB SpecificationsThis project team was formed during AsiaTAC 2007 to understand the differences between the GB specifications in China and those of western countries. The group is organizing an Internet forum where members can compare information on specifications and get assistance from other members in MTI.

Hydride Formation in Titanium and Alpha Titanium AlloysThis project will provide a better understanding of the conditions under which hydriding of commercially pure titanium and alpha titanium alloys can occur. It will also help MTI determine whether a follow-on project in which we will be better able to predict the likelihood of hydriding through existing or new laboratory tests is achievable.

Page 6: Global Voices. Global Value. - MemberClicksexplain (1) the manufacturing of glass lined equipment in China, (2) a method of auditing glass lined equipment manufacturers, (3) a method

04 | 05

Advanced Metal Dusting Resistant AlloyWork continued on evaluation of the metal dusting resistant alloy. Three 50 heats of the alloy were prepared at Special Metals Corp. The alloy was successfully hot and cold rolled into strip for evaluation. Coupons of the scaled up alloy are currently under metal dusting testing under commercial process conditions. The scaled up alloy is also being evaluated in a small scale welding test, Varestraint test, to determine its weldablility. Data collection from these tests is expected by the end of 2009. The data will provide a basis for assessing whether the alloy is attractive for further scale up and commercialization by an alloy producer.

RBI for PolymersThe methodology for applying RBI technology was developed for MTI members by Becht Engineering. A software tool is available to MTI members on the MTI web site use. The tool is an Excel spreadsheet tool and is designed for ease of use. Feedback on the use of the tool to make risk assessments on FRP storage tanks will allow MTI to decide whether to extend the tool to other FRP vessels such as piping and columns.

Terahertz ImagingThe first phase of the Terahertz Imaging project to detect defects in FRP structures, corrosion under insulation and corrosion behind refractory was completed. The results were mixed indicating the technology needs further development and refinement. A phase II project is under consideration.

Data Retrieval ServicesA searchable system was developed for members to search MTI documents in a user friendly way. The system was developed by Granta and is available to MTI members’ online through the MTI web site. The system currently has 21 of the most useful MTI documents in the system. The system allows a user to search all 21 documents at the same time or individually. The project team is in the process of adding additional titles to system and those are expected to be available to MTI members in 2010.

FRP Inspector TrainingMTI developed and conducted an FRP Inspector Training session in China at the September 2008 SinoTAC meeting. The training program was very well attended and well received. A second training was planned for 2009 but the worldwide economic down turn caused postponing the second training session in China in 2009. The current plan calls for conducting the training session in China in 2010.

Linda Hall Library-Archive for MTI Books and DocumentsIn 2008 MTI arranged with the Linda Hall Library in Kansas City to archive all MTI books and documents. In addition, the Linda Hall Library will contract with MTI to perform literature services as needed by project teams, PDCs and staff. The Linda Hall Library is the largest privately funded library of science, technology and engineering in world open to the public. Bert Krisher, MTI fellow and long time MTI member introduced MTI to the Linda Hall Library and MTI’s relationship with the Linda Hall Library will stand as another monument to Bert’s long service to MTI. http://www.lindahall.org/

Annual Highlights

Page 7: Global Voices. Global Value. - MemberClicksexplain (1) the manufacturing of glass lined equipment in China, (2) a method of auditing glass lined equipment manufacturers, (3) a method

COMPLETED PROJECT: FRP Repair ManualThis manual, which was completed in 2009, guides owners and users in the assessment, repair, and alteration of FRP and dual laminate equipment. It provides a basis for owners to determine whether a proposed repair procedure is realistic. It does not instruct personnel engaged in the design, inspection and physical repair or alterations of the equipment. These personnel need a combination of training and practical experience and demonstrated performance that qualifies them for this work.

TRAINING: Glass Lined Equipment MTI is preparing a training program with the cooperation of Chinese and North American experts. The course will explain (1) the manufacturing of glass lined equipment in China, (2) a method of auditing glass lined equipment manufacturers, (3) a method of developing a specification for glass lined equipment, and (4) damage mechanisms and repair methods for glass lined equipment. We plan to conduct this course in the Shanghai area sometime in 2010.

MTI ScholarshipFollowing the death of MTI Fellow, Bert Krisher in 2008, the Board of Directors renamed the MTI Scholarship. It is now called the MTI Bert Krisher Memorial Scholarship and the first winner was David Cole, a junior in Materials Engineering at the University of Cincinnati who was presented the check for $10,000 at CORROSION 2009, NACE’s Conference & Expo held in Atlanta in March.

Global Voices. Global Value.

Damage AssessmentThis is a revision of MTI’s Guidelines for Assessing Fire and Explosion Damage which brings the original book up to date. The book has been expanded to include additional events, most significantly hurricanes, that cause production disruptions. It includes discussions on investigations and issues outside of the United States as well as within the United States. The reviewing author is one of the original authors and the project team has experience with plant operations and investigations within their own plants.

Page 8: Global Voices. Global Value. - MemberClicksexplain (1) the manufacturing of glass lined equipment in China, (2) a method of auditing glass lined equipment manufacturers, (3) a method

06 | 07

Global Voices. Global Value.

MtI’s Vision: By 2015, MtI will operate a robust global network recognized as the preferred source for materials technology solutions that enhance processing safety, reliability, profitability, and sustainability.

Benefits of MembershipMTI membership provides a variety of benefits that include:

• Access to a network of materials engineering specialists with many years of experience in all facets of process industry materials engineering. The leverage provided by this network multiplies the capability of the members’ engineering staff for a fraction of the cost of a single engineer.

• Members actively participate in the selection and definition of MTI projects. This participation provides members an opportunity to ensure that the project meets their needs. This leveraged project system provides the member with access to projects in a variety of materials related fields and gives members a development capability they would not otherwise have.

• Members have immediate access to information being developed by MTI projects that is not available to non-members.

• Participation in the Technical Advisory Council meetings held each year is an excellent source of practical training for engineers new to the process industry as well as for veterans who learn from each other during both project and forum discussions.

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

MTI accomplishes its mission by meeting the following objectives:

1. Serve the needs of our members in key processing industries, such as: refining, mining, energy production, food processing, semi-conductor manufacturing, chemical production, pulp and paper, pharmaceuticals, and other processing industries.

2. Sponsor R&D that matters to our members: • Develop valuable new technologies. • Incorporate new knowledge into

operating practices.

3. Provide networking opportunities so members can achieve the associated benefits:

• Exchange of non-proprietary information. • Leveraging of resources among technical

organizations, universities, and consortia.

4. Identify, develop, and disseminate information on state-of-the-art technologies that offer clear benefits to processing facilities and operations.

5. Provide continuing professional education opportunities in materials technology.

6. Influence the development and appropriate use of pertinent codes, standards, and regulations.

Page 9: Global Voices. Global Value. - MemberClicksexplain (1) the manufacturing of glass lined equipment in China, (2) a method of auditing glass lined equipment manufacturers, (3) a method

Much has changed since the last MTI Annual Report was published in 2008. That the current economy provides a situation which isn’t just business as usual for the organization is news to no one. That MTI has managed to navigate this new landscape, while minimizing attrition and strengthening its position worldwide is a testament to the commitment of its current members and the value that the organization provides for its member companies.

Our continued success is also the product of remaining true to the organization’s Strategic Plan and never losing sight of its Mission: MTI maximizes member asset performance by providing global leadership in materials technology to improve safety, reliability and profitability. Everything we accomplish, whether it’s a completed project, a vital training course, or a shared case history, supports this goal in one-way or another.

I’m encouraged our membership numbers remain healthy, but we need to continue to find ways to provide value for the member companies that continue to believe in the MTI model. To that end, we were quick to survey membership on how the organization could help them weather trying times. Their answers have led to changes, such as the addition of web-based meeting technology allowing project teams to collaborate remotely, year-round. Members experiencing budget and travel restrictions are also able to participate in TAC Meetings and even vote on projects and to contribute to other important decisions via the Internet.

Now, maybe more than ever, instant access to an ever-growing network of corrosion experts, databases, and other materials engineering tools makes MTI a wise investment, no matter your location on the globe. Companies leverage these resources to solve problems that range from equipment failure to process and safety improvements. They can literally mean the difference between a project’s success and failure in organizations where institutional knowledge

fades with each retirement and manpower shrinks with each downsizing measure.

In fact, the demographics of our member companies are changing as the processing world continues to resize, evolve and relocate. Not surprisingly, the make-up of MTI’s membership is following a similar pattern, and the organization is evolving to serve representatives from a wider variety of generations and member companies in new regions. For example, MTI’s Asian and European organizations, AsiaTAC and EuroTAC, have each been empowered to organize annual meetings, create committees, and develop projects. Projects such as EuroTAC’s metal dusting studies could offer benefits to member companies worldwide. For the first time, this Annual Report includes messages from the EuroTAC and AsiaTAC Chairmen along with the AmeriTAC Chairman’s letter.

A heightened awareness of materials issues around the globe is only part of the overall picture. MTI continues to be successful in North America, where it began. To-date, MTI has funded 194 projects, many of those approved at what is now termed the AmeriTAC Meeting. These forums continue to generate new ideas as well as provide the face-to-face interaction and problem-solving opportunities that many member company representatives find so valuable.

As we approach the 100th AmeriTAC Meeting this fall, MTI remains a strong and stable organization, one which I’m proud to serve as Chairman of the Board. Though the horizon may be constantly changing, from my vantage point, the future continues to look encouragingly bright for MTI.

Dale HeffnerChairman, Board of Directors

Report of the Chairman– Board of Directors

Page 10: Global Voices. Global Value. - MemberClicksexplain (1) the manufacturing of glass lined equipment in China, (2) a method of auditing glass lined equipment manufacturers, (3) a method

Report of the AmeritAC Chairman– technical Advisory Council

08 | 09

For 32 years, MTI has brought its member companies together to discuss the latest materials technology issues three times a year in various North America destinations. The value of these forums has been as good as the considerable member participation that they have generated.

Fast forward to the AmeriTAC Meetings of 2009. Today’s challenging economy has added stress to the member companies’ ability to send representatives to the meetings. In response, MTI has accelerated the use of internet based options to maintain critical levels of participation at its meetings and training. Staff and TAC leadership adopted the same GoToMeeting software used for team meetings between the regular meetings. The internet software allows remote attendees to see the information being discussed as well as hear the discussion in real-time.

It can also be an effective tool for leaders and presenters. In fact, some meetings have already been led by a person at a remote location who was not able to attend. The remote meeting leader worked through the agenda and displayed information to the group online.

MTI recently used GoToMeeting in conjunction with a Stainless Steel Training class. Approximately 60 people participated in the session, nearly half of those online. This innovative technology allowed people with travel restrictions to take part in the training. The eight-hour class, taught by MTI member company experts, provided all attendees, those present and on the Internet, with increased insight into the use of stainless steel.

As helpful as this technology is, it is not the intent of TAC to have online meetings as a preferred method of participation. Surveys of members consistently indicate that live attendance at the meetings is more valuable; however, when the choice is participating online or not participating at all, the internet approach provides an alternative.

It’s an alternative that we are working to improve. Until recently, MTI policy didn’t allow remote participants to vote on TAC issues, such as project proposals. We have modified the manual to allow companies with no members in attendance at the meeting to vote on project proposals. With internet meetings, companies unable to have a representative present can hear and see a proposal as well as the discussion. This allows understanding of the issue, so a vote can be cast over the Internet. This policy change will be in effect at the October 2009 meeting.

In addition to being progressive, we continue to be a very productive organization. MTI and its members regularly develop, approve, and complete projects, publications, and training sessions. Surveys indicate that the Internet forum questions are even more valuable in today’s fast-paced world, where engineers need guidance soon if not immediately. The topics posted online are also discussed at the live AmeriTAC sessions, which benefits all participants. At nearly every MTI meeting, members report how quickly they receive answers to their questions. With fewer materials experts in many companies these days, the online and live forums help maintain critical ongoing support needed in our organizations.

As AmeriTAC continues to move forward, both at traditional live meetings and virtually, I want to thank all of the members, staff and contractors for their help in adapting to the changes. Carefully leveraged, these changes can add great value for MTI member companies. If you have questions or suggestions that you would like to discuss, please contact me or Robert Sinko (AmeriTAC Vice Chair). Randy ScheelAmeriTAC Chairman

Page 11: Global Voices. Global Value. - MemberClicksexplain (1) the manufacturing of glass lined equipment in China, (2) a method of auditing glass lined equipment manufacturers, (3) a method

Over the past year, MTI has experienced steady growth in the Asia Pacific area, particularly in China, for a number of reasons. Most importantly, member companies that attended AsiaTAC 2008 continued to take part in this year’s activities. At the same time, previously inactive member companies have contacted organizers and showed strong interest in participating. In addition, MTI’s unique model and valuable resources it offers has attracted non-member companies, many of whom are considering membership.

The annual September AsiaTAC is the most important MTI event in the region. Monthly Steering Team conference calls have helped us prepare for the meeting and established a forum in which members discuss activities and even provide guidance.

The hard work is paying dividends. Last year, 18 member companies attended SinoTAC (now AsiaTAC). This year’s conference, which will include four panel discussions, three project reviews, information exchanges, a one-day technical Stainless Steel Seminar, and receptions, is expected to draw at least 20 organizations. Two groups of visiting speakers, from Chinese stainless steel and fastener associations, are also planning to participate.

This year, we also organized face-to-face meetings every two months among our local member companies in Shanghai. Participants in remote areas were able to call in to attend the sessions. These forums have strengthened our communication and network and have become a very good addition to our monthly Steering Team Meetings.

Besides these group sessions, there are three ongoing MTI projects in Asia, all of which are running smoothly. The Glass-lined Equipment Project Team is planning to arrange a major training session for the member company engineers. The Standard Comparison Project is establishing an Internet-based forum for exchanging information. Finally, the group working on Fastener Development Project has arranged a meeting with Chinese fastener associations. In addition, this very active project team plans to write a fastener procurement standard and would like to hold a fastener technical conference.

We have an aggressive plan for the future of AsiaTAC. One unique advantage of our association is that we are the only one to bring so many world-class, worldwide chemical companies together. We will use this advantage to develop our networks and activities as fast as we can, so that our member companies can realize benefits from MTI as early as possible. To reach that goal, we will need the support of every member company and each individual representative. We are quite confident that the AsiaTAC of the tomorrow will be larger and stronger and will bring more value to our member companies.

Henry YeAsiaTAC Chairman

Report of the AsiatAC Chairman– technical Advisory Council

Page 12: Global Voices. Global Value. - MemberClicksexplain (1) the manufacturing of glass lined equipment in China, (2) a method of auditing glass lined equipment manufacturers, (3) a method

ExxonMobil ChemicalBaytown, TexasB. J. Fitzgerald

Allegheny Technologies Incorporated

Pittsburgh, Pennsylvania C. Botti

Air Products and Chemicals, Inc.

Allentown, PennsylvaniaW. R. Watkins, Jr.

AkzoNobelAmsterdam, The Netherlands

E. R. Naylor

Albemarle CorporationBaton Rouge, Louisiana

T. E. Henke

Det Norske Veritas Houston, Texas

C. E. Jaske

EllETT Industries ltd.Port Coquitlam, British Columbia

R. D. Gill

Eli lilly and CompanyIndianapolis, Indiana

B. Dalder

Celanese CorporationDallas, TexasA. H. Rakhe

Engineers India limitedNew Delhi, IndiaV. R. Krishnan

The Dow Chemical CompanyMidland, Michigan

E. L. Liening

DuPont CompanyWilmington, Delaware

P. R. Khaladkar

Eastman Chemical CompanyKingsport, Tennessee

G. S. Whittaker

BASF CorporationMt. Olive, New Jersey

B. McCurry

Bayer Technology Services GmbH

Leverkusen, GermanyM. H. Renner

BPLondon, EnglandW. K. Blanchard

ConocoPhillips, Inc Houston, Texas

D. McIntyre

Electro Chemical Engineering and Manufacturing Co.

Emmaus, PennsylvaniaD. K. Heffner

Dynamic MaterialsBoulder, Colorado

J. Banker

Corrosion MaterialsBaker, Louisiana

R. Smith

Cytec IndustriesWest Paterson, New Jersey

D. McIntyre

Asahi Kasei CorporationToyko, JapanM. Nakahara

Air liquideParis, France

J. Furtado

FMC CorporationPhiladelphia, Pennsylvania

S. Kesavan

Haldor TopsøeLyngby, DenmarkM. J. L. østergård

Chevron Energy Technology Company

Richmond, CaliforniaG. J. Kusinski

Member Companies & Designated Representatives

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

E. Chant

10 | 11

Page 13: Global Voices. Global Value. - MemberClicksexplain (1) the manufacturing of glass lined equipment in China, (2) a method of auditing glass lined equipment manufacturers, (3) a method

lloyd’s Register Americas, Inc.Houston, Texas

J. E. Aller

Sandvik Materials TechnologySandviken, Sweden

M. Senatore

Nickel InstituteToronto, Ontario

G. Coates

Haynes International, Inc.Kokomo, Indiana

P. Manning

Hellenic Petroleum S. A.Thessaloniki, GreeceS. A. Perdikopoulos

original colors: 485 red, 116 yellow, 294 blue

NoVA Chemicals CorporationPittsburgh, Pennsylvania

G. Donald

Shell Global Solutions (US) Inc.

Houston, TexasW. C. Fort, III

Schmidt+Clemens GmbH+CoLindlar, Germany

D. Jakobi

RathGibsonLincolnshire, Illinois

D. R. Moore

Rolled AlloysTemperance, Michigan

P. Whitcraft

VictaulicEaston, Pennsylvania

R. A. Eddy

outokumpu, Inc.Schaumburg, Illinois

E. Torsner

HoneywellMorristown, New Jersey

D. E. Kaye

The Roberts CompanyWinterville, North Carolina

M. Eshelman

SABICRiyadh, Saudi Arabia

H. Schrijen

P.A. Inc.Houston, Texas

O. Galloway

Syncrude Canada ltd.Fort McMurray, Alberta Canada

M. Anderson

Saudi International Petrochemical Company

Jubail Industrial City, Saudi ArabiaA. Biggs

Praxair, Inc.Danbury, Connecticut

A. V. Samant

Rl IndustriesFairfeild, OhioS. Linnemann

Roben Manufacturing, Inc.Lakewood, New Jersey

K. Wyrough

Mitsui Chemicals, Inc.Tokyo, JapanH. Matsuda

Quadrant Engineering Plastic Products

Reading, PennsylvaniaA. Blazejewski

TantalineWaltham, Massachusetts

E. Hinshaw

Titanium Fabrication Corp.Fairfield, New Jersey

G. Dunn

Global Voices. Global Value.

Page 14: Global Voices. Global Value. - MemberClicksexplain (1) the manufacturing of glass lined equipment in China, (2) a method of auditing glass lined equipment manufacturers, (3) a method

Report of the eurotAC Chairman– technical Advisory Council

12 | 13

The EuroTAC 2009, held in Cologne, Germany, was the 6th independent European MTI meeting and the first since the bylaw changes creating regional TAC organizations with a certain degree of autonomy. Previously, a number of meetings were held bi-annually in conjunction with the Nickel Institute.

This is a fundamental change; one which allows the regional TACs to propose projects directly to the Board of Directors and goes a long way to dispel the myth that MTI is just an “American organization for Americans”. As more than 25% of MTI’s member companies are headquartered in Europe, not counting the other member companies who have significant business interests and production facilities in Europe, these changes are a welcome addition to MTI.

This change also brings along a number of challenges. Historically, MTI was a US-based organization. There are obvious cultural differences between the US and Europe as well as significant dissimilarities among individual European countries. In addition, there are potential language barriers. Europe and, maybe more appropriately, each country within Europe has its own well established peer network, and some have a good international reputation. The impact of individual governmental regulatory bodies should also not be underestimated. All of the above issues could have played a role in the reservations that some Europeans have expressed.

Hopefully, the Spring 2009 session will be seen as a turning point in the “new” European arm of MTI. At the meeting, there was overall consensus on some of the specific goals of EuroTAC. These include: • Develop training sessions for the younger

generation, especially within the fields of inspection

• Develop workshops on relevant issues

• Find and develop European issues of common interest

• Provide the necessary platform for appropriate project definition and execution with only one meeting a year

• Establish strategies for network strengthening across borders

Another important advancement within the European structure, in contrast to the well established AmeriTAC organization, is the development of a EuroTAC Steering Group. This group (Natalie Gelder – BASF; Bo Gillesberg – Tantaline; Andrew Kelleher – Bayer; and Maria Østergård – Haldor Topsoe) will assist me in not only putting together the EuroTAC meetings, but in achieving the stated goals. Their input is welcomed and greatly appreciated.

Just a word or two on potential projects: During EuroTAC, participants discussed three potential Metal Dusting projects that could be considered for funding in Europe. The group is discussing the ideas via conference calls and emails as well as determining a Project Champion.

Lastly, a special thank you must go to MTI Staff member Galen Hodge, who has tirelessly prodded, cajoled, encouraged and assisted us in all our efforts. Without him and the office staff in St. Louis, much less would have been achieved and the future of MTI in Europe would not have looked so promising.

Michael TurnerEuroTAC Chairman

Page 15: Global Voices. Global Value. - MemberClicksexplain (1) the manufacturing of glass lined equipment in China, (2) a method of auditing glass lined equipment manufacturers, (3) a method

These are definitely challenging times for organizations like MTI that depend on participation of member company employees. These challenges also provide opportunities for MTI to focus on adding value to MTI membership. To this end, MTI is responding to the economic situation by focusing on delivering value to members and communicating that value.

To facilitate member participation in our meetings, MTI has enabled members to participate remotely in all MTI meetings using GoToMeeting internet services. This has allowed all members to participate in projects regardless of their companies’ travel constraints. Indeed, North American and European members have participated in project team meetings that have occurred in conference rooms in Shanghai. Using the same technology, members have remotely attended training sessions and state-of-the-art presentations without the need to travel. This remote participation capability allows member technical experts to focus MTI participation on activities in their field of expertise.

MTI has become even more international to support our international membership and has strategic goals to support its members wherever they have needs. MTI now holds five yearly Technical Advisory Council (TAC) meetings: three in North America, one in Europe, and one in China. To more effectively support our AsiaTAC activities in china, MTI is in the process of establishing a virtual office in Shanghai staffed with local people. This will allow us to accomplish our strategic goal to support our member activities in Asia.

During economic downturns, MTI has tended to lose several members each year due to member company financial constraints. To counter this effect, the staff and BOD have focused efforts on retaining current members and recruiting new members by communicating the value of membership. In 2009, seven members did not renew for both economic and other reasons but five new members joined for a net membership decrease of two. Currently MTI serves 52 members.

During the next few years, MTI will continue to focus on delivering value to members and communicating that value.

James M. MackiExecutive Director

executive Director’s letter

Page 16: Global Voices. Global Value. - MemberClicksexplain (1) the manufacturing of glass lined equipment in China, (2) a method of auditing glass lined equipment manufacturers, (3) a method

Board of Directors

14 | 15

The Board of Directors, elected by the Member Representatives, manages the business of MTI.

Seated, Front Row, Left to Right:

John E. AllerPresidentLloyd’s Register Americas, Inc.Houston, Texas

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

Randy l. Scheel, TAC Chair, Ex officio

Director of Chemical OperationsAllegheny TechnologiesPittsburgh, Pennsylvania

Seated, Middle Row, Left to Right:

Edward R. Naylor, Vice-ChairmanSenior Materials Engineering Associate AkzoNobelArnhem, The Netherlands

Gary S. WhittakerSenior Materials Engineering AssociateEastman Chemical CompanyKingsport, Tennessee

William C. Fort, IIIPrincipal EngineerShell Global Solutions (US), Inc.Houston, Texas

Robert Sinko, TAC Vice ChairAssociate Materials EngineerEastman Chemical CompanyKingsport, Tennessee

Standing, Left to Right:

Robert D. GillVice President, SalesELLETT Industries Ltd.Port Coquitlam, British Columbia

Kelly E. WyroughTechnical Services/SalesRoben Manufacturing, Inc.Lakewood, New Jersey

Eugene l. lieningSenior Materials Engineering AssociateThe Dow Chemical CompanyMidland, Michigan

Pradip R. KhaladkarSenior Consultant, Plastics, Elastomers & Composites TechnologyDuPontWilmington, Delaware

Not Pictured:

Maria J. l. østergårdSenior MetallurgistHaldor TopsøeLyngby, Denmark

Srini Kesavan Principal EngineerFMC CorporationPrinceton, New Jersey

Michael Turner, EuroTAC ChairMetallic Materials ConsultantAkzoNobelArnhem, The Netherlands

Henry Ye, AsiaTAC ChairMaterials Engineering ConsultantDuPont Engineering and TechnologyWilmington, Delaware

The four critical

Page 17: Global Voices. Global Value. - MemberClicksexplain (1) the manufacturing of glass lined equipment in China, (2) a method of auditing glass lined equipment manufacturers, (3) a method

DirectorsSeated Left to Right:

Heather StineAssociate Director

Galen HodgeAssociate Director

Emory FordAssociate Director

Standing Left to Right:

Barry GreeneAssociate Director

James Macki

Executive Director

Tony ScribnerAssociate Director

St. Louis StaffLeft to Right:

lori ElginAdministrative Assistant

Debby EhretOperations Director

Katherine ReineckeAdministrative Assistant

Global Voices. Global Value.

functions of the Board of Directors include planning, organization, leadership, and control.

Page 18: Global Voices. Global Value. - MemberClicksexplain (1) the manufacturing of glass lined equipment in China, (2) a method of auditing glass lined equipment manufacturers, (3) a method

16 | 17

Technical Advisory Councils

Randy Scheel, AmeriTAC Chair 1, 2, 3

Director of Chemical OperationsAllegheny Technologies Incorporated

Robert J. Sinko, AmeriTAC Vice Chair 1, 2, 3

Associate Materials EngineerEastman Chemical Company

Henry Ye, AsiaTAC Chair 2

Materials Engineering ConsultantDuPont Engineering and Technology

Knuth Schweier, AsiaTAC Vice Chair 2

Head of Mechanical Integrity Dept.Bayer Technology Services

Michael Turner, EuroTAC Chair 3

Metallic Materials ConsultantAkzoNobel

Maria J. l. østergård, EuroTAC Vice Chair 1, 2, 3

Senior Materials SpecialistHaldor Topsøe

John E. Aller 1, 2, 3

Strategy DirectorLloyd’s Register Americas, Inc.

Michael Anderson 1, 2, 3

Research Associate Metallurgical EngineerSyncrude Canada Ltd.

David Barber 1

Materials Engineering AssociateThe Dow Chemical Company

Albert Biggs 1, 2, 3

General Manager, Maintenance & Technical ServicesSaudi International Petrochemical Company

Michael Blakely 1, 2, 3

Director of Market DevelopmentDynamic Materials

W. Keith Blanchard 1

Senior Corrosion/Materials AdvisorBP

Arek Blazejewski 1

Sales Manager North America, SYMALIT Fluoroplastics Quadrant Engineering Plastic Products

Clive Breeden 3

MetallurgistBP

Gregor Bueche 3

Sales Manager - Europe Quadrant EPP

Eileen Chant 1, 2, 3

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

Daniel D. Christian 3

Director–Power Market SalesEurope–Middle East–IndiaVictaulic

Gary Coates 1, 2, 3

Technical DirectorNickel Institute

Brian Dalder 1, 2, 3

Engineering ConsultantEli Lilly and Company

George Donald 1, 2, 3

Mechanical Engineer, Regional Metallurgy NOVA Chemicals Corporation

Renee A. Eddy 1

Product Manager Polymers, Advanced Technologies & ToolsVictaulic

Milton Eshelman 1, 2, 3

Senior Design EngineerThe Roberts Company

Brian J. Fitzgerald 1, 2, 3

Senior Engineering AssociateExxonMobil Chemical Company

William C. Fort, III 1, 2, 3

Principal EngineerShell Global Solutions (US), Inc.

Jader Furtado 1, 2, 3

Air Liquide International Expert–R&D: Physical MetallurgyAir Liquide

otis Galloway 1, 2, 3

PresidentP.A., Inc.

Dean Gambale 2

CEO AmericasTantaline

Robert D. Gill 1, 2, 3

Vice President, SalesELLETT Industries Ltd.

Bo Gillesberg 3

CEO EuropeTantaline

Dale K. Heffner 1, 2, 3

Vice PresidentElectro Chemical Engineering & Manufacturing Co.

Tom E. Henke 1, 2, 3

Senior Corrosion SpecialistAlbemarle Corporation

Evan Hinshaw 1

VP SalesTantaline

Patrice Houlle 3

Director Europe, Business Development and Technical MarketingHaynes International

Dietlinde Jakobi 1, 2, 3

General Manager - Research & Development Services Centrifugal Casting DivisionSchmidt + Clemens GmbH + Co

Carl E. Jaske 1, 3

Senior Principal EngineerDet Norske Veritas (USA), Inc.

Dan E. Kaye 1, 2, 3

Staff Engineer – ReliabilityHoneywell

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.

Page 19: Global Voices. Global Value. - MemberClicksexplain (1) the manufacturing of glass lined equipment in China, (2) a method of auditing glass lined equipment manufacturers, (3) a method

Global Voices. Global Value.

Srini Kesavan 1, 2, 3

Principal EngineerFMC Corporation

Pradip Khaladkar 3

Principal ConsultantDuPont

V. R. Krishnan 1, 2, 3

DY, Chief ConsultantEngineers India Limited

Greg J. Kusinski 1, 2, 3

Advanced Materials Research and Development EngineerChevron Energy Technology Company

Rocky Kuykendall 1, 2, 3

Vice President of EngineeringTitanium Fabrication Corp.

Zhou ling 2

PCE Engineering SpecialistThe Dow Chemical Company

Jan links 3

Senior Materials SpecialistThe Dow Chemical Company

Steven linnemann 1, 2, 3

PresidentRL Industries

Mats lundberg 1, 2, 3

Senior SpecialistSandvik Materials Technology

Hiroyasu Matsuda 1, 2, 3

Director, Production & Technology CenterMitsui Chemicals, Inc.

Ben McCurry 1, 2, 3

Materials & Inspection EngineerBASF Corporation

Dale McIntyre 1, 2, 3

Consultant MetallurgyConocoPhillips

Dennis McIntyre 1, 2, 3

Principal Engineer Equipment ReliabilityCytec Industries

Nacéra Sabrina Meck 1

Senior Corrosion EngineerHaynes International, Inc.

Ioannis Melas 1, 2, 3

Metallurgical Engineer, Inspection DepartmentHellenic Petroleum S. A.

Dallas R. Moore 1, 2, 3

Consultant & Management ResourceRathGibson

Michael Moxon 2

Japan Country ManagerVictaulic

Ruben Muro 1, 2, 3

Metallurgical EngineerCorrosion Materials

Masao Nakahara 1, 2, 3

General ManagerAsahi Kasei Chemicals

Edward R. Naylor 1

Senior Materials Engineering Associate AkzoNobel

Ashok H. Rakhe 1, 2, 3

Engineering AssociateCelanese Corporation

Michael Renner 1, 3

Vice President Materials Technology/Mechanical IntegrityBayer Technology Services GmbH

Bernhard Rijpkema 2

Polymeric Materials ConsultantAkzoNobel

Anand V. Samant 1, 2, 3

Senior ManagerPraxair, Inc.

Harry Schrijen 1, 2, 3

Senior Material & Welding Specialist Competence Center ManufacturingSABIC

Steven P. Springer 1

Senior Consultant, Materials Engineering TechnologyDuPont Company

Elisabeth Torsner 1, 2, 3

Vice President, TechnologyOutokumpu Stainless North America

Helen Y.H. Wang 2

President Asian OperationsHaynes International

Yunxiang (Winnie) Wang 2

Senior Materials / Corrosion EngineerBP

William R. Watkins, Jr. 1, 2, 3

Engineering AssociateAir Products & Chemicals, Inc.

Jason Wilson 1, 2, 3

Technical Marketing ManagerRolled Alloys

Kelly Wyrough 1, 2, 3

Technical Services/SalesRoben Manufacturing, Inc.

orson Yong 2

Sales & Marketing Manager / Linings Asia PacificQuadrant EPP Singapore Pte. Ltd.

li Zhang 2

Principal Engineer / Head of SectionDNV

1 AmeriTAC 2 AsiaTAC 3 EuroTAC

Page 20: Global Voices. Global Value. - MemberClicksexplain (1) the manufacturing of glass lined equipment in China, (2) a method of auditing glass lined equipment manufacturers, (3) a method

18 | 19

Financial Statements – June 30, 2009 and 2008

STATEMENTS OF ACTIVITIES FOR THE YEARS ENDED JUNE 30, 2009 & 2008

2009 2008UNRESTRICTED NET ASSETS Revenues Membership dues . . . . . . . . . . $ 1,442,150 $ 1,408,800 Interest . . . . . . . . . . . . . . . . . . 121,367 130,794 Publication income . . . . . . . . . 32,507 27,008 Meeting fees . . . . . . . . . . . . . . 25,492 32,808 1,621,516 1,599,410

Expenses China operations. . . . . . . . . . . 36,220 28,458 Cost of publications . . . . . . . . 16,442 32,036 Insurance . . . . . . . . . . . . . . . . . 29,938 30,888 Meeting expenses . . . . . . . . . . 100,703 116,016 Membership development & retention. . . . . . . . . . . . . . 53,458 44,635 Office supplies . . . . . . . . . . . . . 49,346 59,204 Payroll taxes . . . . . . . . . . . . . . 50,122 36,516 Postage. . . . . . . . . . . . . . . . . . . 17,900 19,690 Printing . . . . . . . . . . . . . . . . . . 13,802 9,374 Professional services . . . . . . . . 29,500 29,315 Projects . . . . . . . . . . . . . . . . . . 676,817 581,175 Provision for depreciation. . . . 6,910 7,006 Rent. . . . . . . . . . . . . . . . . . . . . 22,210 23,684 Retirement plan contributions . . . . . . . . . . . . . 29,596 24,906 Salaries . . . . . . . . . . . . . . . . . . 434,600 344,763 Taxes and licenses . . . . . . . . . . 433 405 Telephone & communications 21,056 14,836 Travel. . . . . . . . . . . . . . . . . . . . 75,692 119,748 1,664,745 1,522,655

INCREASE (DECREASE) IN UNRESTRICTED NET ASSETS . . . . . . . . . 43,229 76,755

NET ASSETS – BEGINNING 2,566,493 2,489,738

NET ASSETS – ENDING . . . . $ 2,523,264 $ 2,566,493

See notes to the financial statements.

STATEMENTS OF FINANCIAL POSITIONJUNE 30, 2009 AND 2008

ASSETS 2009 2008CURRENT ASSETS Cash and cash equivalents. . . . $ 3,089,220 $ 3,319,061 Accounts receivable. . . . . . . . . — 9,900 Accrued interest receivable . . . 34,896 37,551 Prepaids and deposits . . . . . . . . 38,858 15,882 Publications inventory . . . . . . . 109,767 95,181 Total Current Assets . . . . . . . 3,272,741 3,477,575

PROPERTY AND EQUIPMENT Equipment . . . . . . . . . . . . . . . . 84,590 70,725 Less accumulated depreciation . . . . . . . . . . . . . . 69,008 62,098 15,582 8,627

TOTAL ASSETS . . . . . . . . . . . . $ 3,288,323 $ 3,486,202

LIABILITIES AND NET ASSETS

CURRENT LIABILITIES Accounts payable . . . . . . . . . . . $ 74,259 $ 168,359 Total Current Liabilities . . . . 74,259 168,359

DEFERRED REVENUE. . . . . . 690,800 751,350

Total Liabilities . . . . . . . . . . . 765,059 919,709

NET ASSETS Unrestricted . . . . . . . . . . . . . . . 2,523,264 2,566,493

TOTAL LIABILITIES AND NET ASSETS . . . . . . . . . $ 3,288,323 $ 3,486,202

See notes to the financial statements.( )

Page 21: Global Voices. Global Value. - MemberClicksexplain (1) the manufacturing of glass lined equipment in China, (2) a method of auditing glass lined equipment manufacturers, (3) a method

Global Voices. Global Value.

RECONCILIATION OF CHANGE IN NET ASSETS TO NET CASH PROVIDED BY OPERATING ACTIVITIES

2009 2008CHANGE IN NET ASSETS . . . . . $ 43,229 $ 76,755

ADJUSTMENTS TO RECONCILE CHANGE IN NET ASSETS TO NET CASH PROVIDED BY OPERATING ACTIVITIES Depreciation. . . . . . . . . . . . . . . . . . 6,910 7,006 Increase (decrease) in reserve for inventory obsolescence. . . . . . 11,482 1,077 (Increase) decrease in: Accounts receivable . . . . . . . . . . . 9,900 97,500 Prepaid expenses . . . . . . . . . . . . . . 22,976 3,569 Other receivables . . . . . . . . . . . . . 2,655 5,268 Publication inventory . . . . . . . . . . 3,104 15,378

Increase (decrease) in: Accounts payable . . . . . . . . . . . . . 94,100 131,512 Deferred revenues . . . . . . . . . . . . . 60,550 74,100

NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES . . $ 215,976 $ 363,735

STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED JUNE 30, 2009 AND 2008

2009 2008CASH FLOWS FROM OPERATING ACTIVITIES Collections from operations. . . . . . $ 1,449,499 $ 1,640,216 Interest collected . . . . . . . . . . . . . . 124,022 125,526 Cash paid to suppliers and employees. . . . . . . . . . . . . . . 1,789,497 1,402,007

NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES. . . . . . . . . . . . . 215,976 363,735

CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property and equipment 13,865 6,259

NET CASH (USED) BY INVESTING ACTIVITIES 13,865 6,259

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS . . . . . . . . . . . . . . . 229,841 357,476

CASH AND CASH EQUIVALENTS– BEGINNING OF YEAR . . . . . . . . . 3,319,061 2,961,585

CASH AND CASH EQUIVALENTS– END OF YEAR . . . . . . . . . . . . . . . . . $ 3,089,220 $ 3,319,061

See notes to the financial statements.

( )

( )

( )

( )

( )

( )

( )

( )

Independent Auditor’s Report

To the Board of DirectorsMaterials Technology Institute, Inc.

We have audited the accompanying statements of financial position of Materials Technology Institute, Inc. (a non-profit organization) as of June 30, 2009 and 2008, and the related statements of activities and cash flows for the years then ended. These financial statements are the responsibility of the Organization’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance 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 of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Materials Technology Institute, Inc. as of June 30, 2009 and 2008, and the changes in its net assets and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

WRIGHT, CRISCIONE & COMPANY, LLCCertified Public AccountantsSt. Louis, MissouriSeptember 9, 2009( )

( )( )

( )

( )

( )

( )

( )( )

( )

Page 22: Global Voices. Global Value. - MemberClicksexplain (1) the manufacturing of glass lined equipment in China, (2) a method of auditing glass lined equipment manufacturers, (3) a method

20 | 21

Notes to the Financial Statements – June 30, 2009 and 2008

NOTE 1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESThis summary of significant accounting policies is presented to assist in under-standing the Organization’s financial statements. The financial statements and notes are representations of management who is responsible for their integrity and objectivity. These accounting policies, unless otherwise noted, conform to generally accepted accounting principles and have been consistently applied in the preparation of the financial statements.

Nature of Operations: 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 IRS Code Section 501c(6) to engage principally in the business of sponsoring research projects for the chemical process industries. Effective December 4, 2003, the Organization changed the name of the Organization to Materials Technology Institute, Inc. The Organization extends credit to its members for sales of publica-tions. The member companies are located in various countries.

Cash and Cash Equivalents: For purposes of the financial statements, the Organization considers certificates of deposits, with various dates of maturities, to be cash equivalents. This includes certificates totaling $2,199,000 maturing after one year.

Allowance for Doubtful Accounts: An allowance for doubtful accounts has not been established as it is the Organization’s policy to use the direct write-off method for accounts deemed uncollectible. This method is not in conformity with generally accepted accounting principles, but this departure does not materially affect operating results, and accordingly, the Organization has not provided for anticipated losses.

Prepaid Expenses: Prepayments of expenses clearly related to future periods are considered as deferred charges and are not charged against current earnings.

Deferred Income: Membership income is received in advance. Accordingly, membership income is earned ratably over the period, with the unearned portion shown as deferred income at the balance sheet date.

Inventories: The Organization maintains an inventory of publications which report the results of its research projects. Direct costs of editing and production are capi-talized and a unit value is established for each publication. Inventories are stated at the lower of cost or market with cost being determined by the first-in, first-out method. Company management has ascer-tained that the inventory of publications is subject to obsolescence due to advances in technology and other factors affecting the industries it serves. Accordingly, manage-ment has elected to establish a reserve for obsolescence with respect to ascertaining the realizable fair market value of its publications. The Organization took into income $11,482 in the year ended June 30, 2009 to reduce this reserve.

Inventories at June 30, 2009 and 2008 consisted of the following:

2009 2008 Finished publication inventory $ 172,236 $ 164,432Less reserve for obsolescence 62,469 73,951 109,767 90,481Publications in progress — 4,700 $ 109,767 $ 95,181

Property and Equipment: Property and equipment are recorded at cost. Depreciation is provided using the straight line method. Repairs and maintenance, which do not improve

or extend the useful life of the asset, are expensed in the year incurred.

The useful lives of property and equipment for the purposes of computing depreciation are:Equipment . . . . . . . . . . . . . . . . . 5 – 7 years

Depreciation expense for the years ended June 30, 2009 and 2008 was $6,910 and $7,006, respectively.

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. Prior to January 1, 2004, the Organization did not provide for matching or profit sharing contributions. The Plan was amended on January 1, 2004 to provide a 100% matching contribution of employee deferrals not to exceed 1% of eligible compensation. The Organization amended this formula effective January 1, 2005 to include a 50% match of employee defer-rals between 1% and 5% of compensa-tion, thereby increasing the total match to a maximum of 3%. The Organization amended this formula effective January 1, 2006 to include a 100% match of employee deferrals not to exceed 5% of compensation. Matching contribution expense totaled $29,596 and $24,906 for the years ended June 30, 2009 and 2008, respectively.

Reclassifications: In order to facilitate comparison of financial information, certain reclassifications have been made to the June 30, 2008 financial statements to conform with the June 30, 2009 financial statement presentation.

Federal Income Taxes: The Internal Revenue Service has ruled that the Organization is a tax exempt organization as defined under Section 501(c)(6) of the Internal Revenue Code. Accordingly, no provision for

( ) ( )

Page 23: Global Voices. Global Value. - MemberClicksexplain (1) the manufacturing of glass lined equipment in China, (2) a method of auditing glass lined equipment manufacturers, (3) a method

Global Voices. Global Value.

Annual Sales Year 2010(US$ Billions) Dues - US$Sales < 0.2 . . . . . . . . . . . . . . . . $ 10,5000.2 < Sales < 0.4 . . . . . . . . . . . $ 14,4000.4 < Sales < 0.8 . . . . . . . . . . . $ 18,2000.8 < Sales < 1.5 . . . . . . . . . . . $ 22,1001.5 < Sales < 3.0 . . . . . . . . . . . $ 26,1003.0 < Sales < 6.0 . . . . . . . . . . . $ 30,0006.0 < Sales < 12.0 . . . . . . . . . . $ 33,90012 < Sales < 25 . . . . . . . . . . . . $ 37,80025 < Sales < 50 . . . . . . . . . . . . $ 41,70050 < Sales < 100 . . . . . . . . . . . $ 45,600

Annual Sales Year 2010(US$ Billions) Dues - US$100 < Sales < 200 . . . . . . . . . . $ 49,600200 < Sales < 400 . . . . . . . . . . $ 53,500400 < Sales < 800 . . . . . . . . . . $ 57,400800 < Sales < 1,500 . . . . . . . . . $ 61,300

A formula is used to determine the annual dues for engineering, design, and construction firms. Please contact the MTI office for specific information.

Dues 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:

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

Suppliers: Dues for Supplier members will be determined from the established dues schedule and will be based on the most recently audited total sales

of the corporation, or portion of the corporation, which could in theory benefit from MTI membership. For privately held corporations, the total corporate sales of units related to the CPI must be certified by an officer.

The Board of Directors may make exceptions to this policy in cases where, in its judgement, the affiliates of the applicant, even though they are related to the chemical processing industry, cannot reasonably be expected to benefit from the membership in MTI.

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

Schedule of Annual Membership Dues for 2010

Basis for Assessing Company’s Membership Dues

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

federal income taxes has been made in the financial statements.

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.

NOTE 2) LEASE OBLIGATIONSAt June 30, 2009, the Organization was obligated under non-cancelable operating leases for its office facilities and certain office equipment which expire in June, 2012 and February, 2011, respectively. The future minimum rental payments under the leases are as follows:

Year ended June 30, Offices 2010 $ 21,608 2011 22,192 2012 22,776 $ 66,576

OfficeYear ended June 30, Equipment 2010 $ 4,842 2011 3,228 2012 — $ 8,070

Year ended June 30, Total 2010 $ 26,450 2011 25,420 2012 22,776 $ 74,646

NOTE 3) COMMITMENTSThe Organization is a party to several research projects requiring payments of approximately $893,000 over the life of existing projects.

Notes to the Financial Statements (Continued) – June 30, 2009 and 2008

Page 24: Global Voices. Global Value. - MemberClicksexplain (1) the manufacturing of glass lined equipment in China, (2) a method of auditing glass lined equipment manufacturers, (3) a method

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

Tel: 314.576.7712 • Fax: 314.576.6078E–mail: mtiadmin@mti–global.org • Home Page: 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.