2014 Annual Report - Materials Technology Institute

Transcription

Collaboration Creates Value
2014 ANNUAL REPORT
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
Collaboration Creates Value
I
t 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.
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.
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.
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.
Collaboration in Action
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.
There 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.
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.
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.
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.
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.
Materials Technology Institute | 2014 Annual Report | 1
Featured Projects
New Atlas of Microstructures
Zooms in on Duplex Stainless Steels
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, instructive images of duplex stainless steel microstructures.
Duplex stainless steels are replacing 300 series
stainless steels as well as more expensive nickelbased 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
2 | Collaboration Creates Value
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 precipitates look like in duplex stainless steels. The atlas
is a useful tool for screening duplex products, evaluating weld procedures, and performing failure analyses.
The large but nimble Project Team, led by Cochampions 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.
Polymers Project Examines Weld
Morphologies and Evaluation
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.
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 establish 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 chemical exposure, providing a new standard in plastic weld
repair techniques that could be of tremendous value to
MTI member companies.
MTI has collaborated with Swerea KIMAB, a world
leader in the discipline of corrosion properties of polymeric materials, to study the morphological changes
of welds on polymers that have been exposed to
TAC Reports
Projects and Technical
Presentations Drive AmeriTAC
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 Nontraversing 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.
EuroTAC 2014 participants gather at TNO’s research facilities in Eindhoven, The Netherlands.
New Leadership and Ideas at EuroTAC
Collaboration with Eindhoven, Netherlands-based laboratory TNO provided 2014 EuroTAC Meeting participants
with a look at new twists on technology. MTI’s annual European 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 presentations 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.
FFS Training Session Highlights AsiaTAC Meetings
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 proceedings. 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 instrumental 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.
Jesse Chen, MTI, with Keynote Speaker Professor Tsai,
National Cheng Kung University of Taiwan
2014 Highlights
Whitcraft Steps Up to
New Role as MTI Chair
MTI 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 Representative since 1995. He has also served on ASTM International’s Board of Directors and is a member of NACE
International, The
Corrosion Society,
ASM International, SAE International, and the
Technical Association of the Pulp
and Paper Industry
(TAPPI). MTI is
pleased to have
such an experienced and versatile
new leader of its
Board of Directors.
Paul Whitcraft
MTI Publishes
Guide for Repair
of Lined Equipment
MTI 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 Engineering 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.
2014 MTI Scholarship Winners (David Waligorski, center-left, and Zackary Lerch, center, right)
2014 MTI Scholarship Winners
MTI awarded $5000 each to its 2014 Bert Krisher Memorial
Scholarships winners, Zackary Lerch and David Waligorski,
both seniors studying Materials Engineering at the University of Akron. Paul Manning (Haynes International) and
John Aller (MTI) presented the awards at the NACE Annual 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.
MTI Sponsors Study with Senior
Engineering Design Class at MS&T
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 various 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.
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.
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
Investigation of
Technologies Common
to Other Industries
In 2011, MTI approved a project to investigate technologies 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 member priorities, including online/continuous monitoring of
equipment integrity, inspection tools and technologies for
inaccessible pipelines and vessels, high temperature materials 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 opportunities when the combination of resources could add up to
substantial value for its members companies.
MTI Teams with
CSM to Develop
Thermophysical
Model for Insulation
Insulating 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.
MTI’s Vision
MTI will be the process industries’ first choice for materials
technology networking and solutions.
MTI’s Mission
MTI maximizes member asset performance by providing
global leadership in materials technology to improve safety,
reliability, sustainability and profitability.
Benefits of Membership
MTI’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:
• Rapid and efficient solutions to problems
• Access to an expert network that includes some
of the world’s foremost materials technologists for
immediate and vetted consultation
• A pool of cooperative research funding that
multiplies the collected membership dues
• An opportunity to select, scope, and lead
projects conducted by others
• Privileged access to internally developed
information and project output
• A searchable database of more than 30 years
of Forum questions and discussion
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.
Member Companies and Designated Representatives
Air Liquide
Paris, France
J. Furtado
Air Products and Chemicals, Inc.
Allentown, Pennsylvania
M. Lin
AkzoNobel
Amsterdam, The Netherlands
E. Naylor
Albemarle Corporation
Baton Rouge, Louisiana
H. Wells
Bayer Technology Services GmbH
Leverkusen, Germany
D. Lu
Becht Engineering Co., Inc.
Liberty Corner, New Jersey
E. Chant
BP
London, England
W. K. Blanchard
Celanese Corporation
Dallas, Texas
A. Rakhe
Allegheny Technologies
Incorporated
Pittsburgh, Pennsylvania
J. Grubb
Chevron Corporation
Richmond, California
K. Ganschow
Asahi Kasei Corporation
Toyko, Japan
M. Nakahara
ConocoPhillips, Inc
Houston, Texas
D. McIntyre
Ascend Performance Materials, LLC
Houston, Texas
W. Paden
Corrosion Materials
Baker, Louisiana
R. Muro
BASF Corporation
Florham Park, New Jersey
B. McCurry
DNV GL
Dublin, Ohio
C. Jaske
The Dow Chemical Company
Midland, Michigan
G. Liening
Dow Corning Corporation
Midland, Michigan
M. Cook
DuPont Company
Wilmington, Delaware
S. Springer
Eastman Chemical Company
Kingsport, Tennessee
R. Sinko
Electro Chemical Engineering and
Manufacturing Co.
Emmaus, Pennsylvania
D. Heffner
FMC Corporation
Philadelphia, Pennsylvania
S. Kesavan
Haldor Topsoe A / S
Lyngby, Denmark
M. J. L. Oestergaard
Haynes International, Inc.
Kokomo, Indiana
P. Manning
Hellenic Petroleum S. A.
Thessaloniki, Greece
I. Melas
Honeywell
Morristown, New Jersey
D. Kaye
Huntsman Petrochemical LLC
The Woodlands, Texas
S. Young
ELLETT Industries Ltd.
Port Coquitlam,
British Columbia, Canada
R. Gill
Industrial Technology
Research Institute
Chutung, Hsinchu, Taiwan
T. P. Cheng
Engineers India Limited
New Delhi, India
P. Lahiri
Jiuli Hi-Tech Metals
Huzhou, Zhejiang, China
D. Lee
ExxonMobil Chemical
Baytown, Texas
J. Houben
Lloyd’s Register
Energy Americas, Inc.
Houston, Texas
R. Alvarez
LyondellBasell
Channelview, Texas
S. Dufault
Polycorp, Ltd.
Elora, Ontario, Canada
D. Nolan
Praxair, Inc.
Danbury, Connecticut
J. White
Quadrant Engineering
Plastic Products
Reading, Pennsylvania
A. Rickert
Mitsui Chemicals, Inc.
Tokyo, Japan
H. Matsuda
RathGibson
Lincolnshire, Illinois
J. Baumann
Nickel Institute
Toronto, Ontario, Canada
G. Coates
RL Industries
Fairfield, Ohio
B. Linnemann
NobelClad
Boulder, Colorado
M. Blakely
Roben Manufacturing Co., Inc.
Lakewood, New Jersey
K. Wyrough
NOVA Chemicals Corporation
Calgary, Alberta, Canada
G. Donald
Outokumpu, Inc.
New Castle, Indiana
P. E. Arnvig
P.A. Inc.
Houston, Texas
O. Galloway
The Roberts Company
Winterville, North Carolina
M. Eshelman
SABIC
Riyadh, Saudi Arabia
H. Schrijen
Syncrude Canada Ltd.
Fort McMurray, Alberta, Canada
M. Anderson
Sandvik Materials Technology
Sandviken, Sweden
M. Senatore
TITAN Metal Fabricators
Camarillo, California
J. Muscarella
Saudi International
Petrochemical Company
Jubail Industrial City, Saudi Arabia
A. Biggs
Titanium Fabrication Corp.
Fairfield, New Jersey
T. Bartley
Schmidt+Clemens GmbH+Co KG
Lindlar, Germany
D. Jakobi
SIMONA America
Kirn, Germany
J. Ploskonka
Sonomatic Limited
Cheshire, United Kingdom
D. Hurst
TOTAL SA
Paris, France
F. Dupoiron
Tricor Industrial, Inc.
Wooster, Ohio
C. Young
Victaulic
Easton, Pennsylvania
M. Sewell
Stress Engineering Services, Inc.
Mason, Ohio
B. Schulze
Webco Industries, Inc.
Sand Springs, Oklahoma
B. Bieber
Rolled Alloys
Temperance, Michigan
P. Whitcraft
Suncor Energy
Calgary, Alberta, Canada
B. Tkachyk
Report of the 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.
Most importantly, we continue to have good attendance
and strong participation at our TAC meetings. Our members 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
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. Manning
Director, CRA Marketing and Business
Development
Haynes International, Inc.
Kokomo, Indiana
Maria Jose Landeira Oestergaard,
BOD Vice Chair
Principal Engineer, Senior Materials Specialist
Haldor Topsoe A/S
Lyngby, Denmark
Edward R. Naylor
Senior Materials Engineering Associate
AkzoNobel
Amsterdam, The Netherlands
Eileen Chant
Manager of Technology Development & Support
Liberty Corner, New Jersey
Standing, Left to Right:
Dale K. Heffner
Vice President
Electro Chemical Engineering &
Manufacturing Co.
Emmaus, Pennsylvania
Michael Anderson,
AmeriTAC Vice Chair, BOD Ex-Officio
Area Leader – Materials Inspection
& Engineering Services
Fort McMurray, Alberta, Canada
Paul K. Whitcraft, BOD Chair
Director of Quality Safety & Engineering
Rolled Alloys
Temperance, Michigan
Steven P. Springer
Senior Consultant, Materials Engineering
DuPont Company
Eugene L. Liening
Manufacturing & Engineering Consultant
Midland, Michigan
David Barber,
AmeriTAC Chair, BOD Ex-Officio
Midland, Michigan
Robert Sinko
Associate Materials Engineer
Kingsport, Tennessee
Not Pictured:
Dietlinde Jakobi,
EuroTAC Chair, BOD Ex-Officio
Director Research & Development Services
Schmidt + Clemens Group
Lindlar, Germany
Srini Kesavan
Principal Engineer
FMC Corporation
Philadelphia, Pennsylvania
Kelly E. Wyrough
Director of Technical Services
Lakewood, New Jersey
Henry Ye, AsiaTAC Chair, BOD Ex-Officio
Materials Engineering Consultant
DuPont Engineering and Technology
Letter from the 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 intellectual endeavor.” Since I am
still relatively new in my role as
Executive Director, I have been
looking for instances of collaboration across the full spectrum of
MTI interactions. What I have found has been gratifying.
MTI is a very collaborative organization, and that collaboration 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 identify 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 opportunities and venues to provide the communication, puts the
articles into the final form, and publishes them. Staff collaboration 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
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
Directors & St. Louis Staff
Seated Left to Right:
Bill Watkins
Associate Director
Debby Ehret
Operations Director
Emory Ford
Associate Director
Standing Left to Right:
Jesse Chen
Associate Director
John Aller
Katherine Reinecke
Administrative Assistant
Randy Scheel
Associate Director
Kirk Richardson
Marketing Director
Lori Elgin
Administrative Assistant
Heather Stine
Associate Director
Executive Director
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.
MTI Fellows
Pradip Khaladkar — 2014
Warren Pollock — 2004
James M. Macki — 2011
Robert Puyear — 2002
William C. Fort III — 2010
Sheldon Dean — 2001
W.B.A. (Sandy) Sharp — 2006
Paul Dillon — 2001
Robert A. McTamaney — 2006
Galen Hodge — 2001
Greg Kobrin — 2005
Bert Krisher — 2001
George Elder — 2004
Technical Advisory Councils
Paul Bosanko 3
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
Area Leader R&D - Reliability & Performance
Improvement
Henry Ye, AsiaTAC Chair 2
Materials Engineering & Technical Inspection
DuPont Company
Rao Guangbin, AsiaTAC Co-Vice Chair 2
Materials Engineering Technical Inspection
BASF Corporation
Ryan Yang, AsiaTAC Co-Vice Chair 2
Materials Engineer, Asia
Dietlinde Jakobi, EuroTAC Chair 1, 2, 3
Director Research & Development Services
Schmidt + Clemens Group
Natalie Gelder, EuroTAC Vice Chair 3
Materials Engineer Technical Inspection &
Materials Engineering & Maintenance
BASF Corporation
Al-Hazemi Ali Abdullah 2
Director Material & Corrosion Section
SABIC
Poul-Erik Arnvig 1, 3
Vice President Global Market Development
Outokumpu, Inc.
Director of CPI Sales
RathGibson
Gregor Bueche 3
Europe Linings Sales Manager
Quadrant Engineering Plastic Products
Manager of Technology Development & Support
Dior Chen 2
Sales Engineer
Haynes International Inc.
Tzu-Ping Cheng 1, 2, 3
Research Supervisor, Department of Advanced
Electrochemistry and Corrosion Prevention
Research
Industrial Technology Research Institute
Ser-Hor Chong 2
Materials Engineer
ExxonMobil Chemical
Daniel Christian 3
Director Oil, Gas, Chemical & Power Markets
Victaulic
Gary Coates 1
Consultant
Nickel Institute
Marc Cook 1, 3
Reliability Engineer
Matt Curtis 1, 2
Product Development and Technical Support
Services
SIMONA America Inc.
Preeda Dansirisomboon 2
Vinay Deodeshmukh 1
Market Manager
Bill Bieber 2, 3
Director of Business Development
George Donald 1, 2, 3
Michael Blakely 1
Global Director of Business Development
NobelClad
Mechanical Engineer, Regional Metallurgy
NOVA Chemicals Corporation
Scott Dufault 1, 2
Principal Materials Engineer
Lyondellbasell
W. Keith Blanchard 1
Senior Corrosion/Materials Advisor
BP
Francois Dupoiron 1, 2, 3
Nils Boehle 3
Manager, Product & Quality Assurance
Allegheny Technology Incorporated
Senior Corrosion/Materials Advisor
BP
Head of Asset Lifecycle Management
Jim Baumann 1, 2, 3
2 AsiaTAC
Clive Breeden 3
Eileen Chant 2, 3
Michael Anderson,
AmeriTAC Vice Chair 1, 2, 3
1 AmeriTAC
CPI Market Manager Europe
3 EuroTAC
Materials and Corrosion Expert
TOTAL SA
Hasse Eriksson 3
Enterprise Customer Manager
DNV GL
Milton Eshelman 1, 2, 3
Senior Design Engineer
The Roberts Company
Robert Freed 1
Senior Consultant, Materials Engineering
DuPont Company
Jader Furtado 1, 2, 3
Expert - R&D Physical Metallury
Air Liquide
Otis Galloway 1, 2, 3
President
P.A. Inc.
Kevin Ganschow 1, 2, 3
Materials Engineer
Chevron Corporation
Justinn General 1, 2, 3
Regional Metallurgist - Houston
Rolled Alloys
Bob Gill 1, 2, 3
Vice President, Sales
Ellett Industries Ltd.
John Grubb 1
Manager Product Technology - Development
Christoph Hantsch 3
Specialist Inspection Integrity Metallurgy
Lyondellbasell
Dragon Hao 2
Technical & Development Manager
Larry Haubner 1
Manager of Business Development
Titan Metal Fabricators
Dale Heffner 1, 2, 3
Vice President
Electro Chemical Engineering
and Manufacturing Co.
Mark Hilton 1, 2, 3
Engineering Fellow Materials - Corrosion
Ascend Performance Materials LLC
John Houben 3
Materials Engineer
ExxonMobil Chemical
John Huang 2
Salesman
Curtis Huddle 1
Materials Engineer
Don Hurst 1
Development Manager, USA
Sonomatic Limited
Trevor Hutley 1, 2, 3
Research Director
Saudi International Petrochemical Company
Carl Jaske 1
Senior Principal Engineer
DNV GL
Dan Kaye 1, 2, 3
Staff Engineer - Reliability
Honeywell
Srini Kesavan 1, 2, 3
Principal Engineer
FMC Corporation
Yong-Joo Kim 1
Vice President Technology
Rocky Kuykendall 1, 2, 3
Vice President of Engineering
Titanium Fabrication Corp.
Pinaki Lahiri 1, 2, 3
General Manager
Engineers India Limited
Denny Lee 2
Deputy General Manager
Zhang Licheng 2
Managing Director China
Nickel Institute
John Lilley 1
General Manager
Sonomatic Limited
Minfa Lin 1, 3
Lead Materials Engineer
Jan Links 3
Senior Materials Specialist
Brian Linnemann 1, 2, 3
Engineering Manager
RL Industries
Xiaomin (John) Liu 1
President & CEO of JIULI USA
David Lu 1
Materials and Corrosion Specialist
Hiroyasu Matsuda 1, 2, 3
Director, Safety & Environment Division
Mitsui Chemicals, Inc.
Zach McCann 2
Regional Manager, Asutralasia and South East
Asia
Sonomatic Limited
Ben McCurry 1
Materials & Inspection Engineer
BASF Corporation
Dale McIntyre 1, 2, 3
Consultant Metallurgy
ConocoPhillips, Inc.
Ioannis Melas 1, 2, 3
Metallurgical Engineer, Inspection Department
Hellenic Petroleum S.A.
Masao Nakahara 1, 2, 3
Peiwu Sun 2
Consultant
Asahi Kasei Corporation
Mechanical Integrity Team Leader
Ed Naylor 1
Brian Tkachyk 1, 2, 3
AkzoNobel
Maintenance and Reliability Services
Suncor Energy
Maria J. L. Oestergaard 1, 2, 3
Principal Engineer, Senior Materials Specialist
Haldor Topsoe A/S
Stephane Pauly 3
European Sales Manager
Shou Peng 2
Poco Wang 2
Manager, Asia R&D Center
Victaulic
Technical Advisor
DNV GL
Jorge Perdomo 1
Yunxiang (Winnie) Wang 2
Materials Engineer
ExxonMobil Chemical
Senior Materials/Corrosion Engineer
BP
Ashok Rakhe 1, 2, 3
Nigel Ward 3
Fellow Engineer
Celanese Corporation
Director, Promotion & Market Development
Nickel Institute
Adam Rickert 1
Hardin Wells 1, 2, 3
America’s Linings Sales Manager
Quadrant Engineering Plastic Products
Sr. Advisor- Mechanical Tech Service
Albemarle Corporation
Jacob Rodriguez 1
James White 1, 2, 3
Technical Sales Engineer
Corrosion Materials
Associate Director
Praxair, Inc.
Harry Schrijen 1, 3
Kelly E. Wyrough 1, 2, 3
Advisor Material & Welding
SABIC
Director of Technical Service
Bernard Schulze 1, 2, 3
Zha Xiaochun 3
Staff Consultant
Stress Engineering Services
Manager
Knuth Schweier 3
Head of Corrosion & Inspection Management
Department
Senior Advisor II
Marcelo Senatore 1
Global Technical Marketing
Mark Sewell
1
Senior Engineer - Materials Technology
Victaulic
James Shipley 3
Technical Marketing Manager
Robert Sinko 2, 3
Associate Materials Engineer
Chang-Ching Sun 2
Director Market Development Business Area
Stainless APAC
Outokumpu, Inc.
Senior Consultant – Corrosion Technology
AkzoNobel
Joerg Wagner 3
Director of Sales - Europe
NobelClad
Tony Scribner 1
Jan van de Wetering 3
Daniel Yiptong 1, 2
Technical Manager
Polycorp, Ltd.
Chuck Young 1, 2, 3
Business Development Manager
Tricor Industrial Inc.
Nina Young 1
Staff Engineer, Inspection/Metallurgical
Huntsman Petrochemical LLC
Nick Zentil 2
General Manager TITAN Wuxi
Bin Zhang 2
Managing Director - China
NobelClad
Wei Zhang 2
Lead of Inspection Team
AkzoNobel
Ling Zhou 2
PCE Engineering Specialist
1 AmeriTAC
2 AsiaTAC
3 EuroTAC
Financial Statements – June 30, 2014
STATEMENTS OF FINANCIAL POSITION
JUNE 30, 2014
STATEMENTS OF ACTIVITIES
JUNE 30, 2014
ASSETS
CURRENT 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
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
PROPERTY AND EQUIPMENT
Office equipment at cost
Less accumulated depreciation
Total Property and
Equipment, Net
107,583
91,938
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
See accompanying notes to financial statements.
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
Independent Auditors’ Report
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( 316,130 )
Cash 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
Board of Directors
Materials 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 Statements
Management 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’ Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit 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 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 circumstances, 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 sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements referred to above
present fairly, in all material respects, the financial position of
the Materials Technology Institute Inc. as of June 30, 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. LLP
St. Louis, MO
September 3, 2014
Notes to Financial Statements – June 30, 2014
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.
1) 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.
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.
Basis of Accounting: The financial statements of the Association have
been prepared on the accrual basis of accounting.
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.
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.
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.
Temporarily Restricted Net Assets — Includes resources for
which donor–imposed restrictions have not been met.
2) INVENTORIES
Inventories at June 30, 2014 consisted of the following:
Permanently Restricted Net Assets — Includes resources for
which donor–imposed restrictions are permanent.
Finished publication inventory
$ 150,257
Less reserve for obsolescence
44,119 )
(
Total Inventories
$ 106,138
There were no temporarily or permanently restricted net assets at
June 30, 2014.
3) CONCENTRATION OF RISK
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.
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.
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.
4) FAIR VALUE MEASUREMENTS
Property and Equipment: Property and equipment are stated at cost, or fair
market value if donated, less accumulated depreciation. Depreciation is provided on the straight–line method over the following estimated useful lives.
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:
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.
Level 1Inputs to the valuation methodology are unadjusted quoted
prices for identical assets or liabilities in active markets.
Level 2 Inputs to the valuation methodology include:
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
20
• Quoted prices for similar assets or liabilities in active markets;
• Q
uoted prices for identical or similar assets or liabilities in
inactive markets;
• I nputs other than quoted prices that are observable for the
asset or liability;
• I nputs that are derived principally from or corroborated by
observable 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 3Inputs 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 $7,648.
Graphic Design: O’Neal Design, St. Louis, Missouri
21
Schedule of Annual
Membership Dues for 2015
Annual Sales
Year 2014
(US$ Billions)
Dues – US$
< 0.2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $12,100
0.2 – 0.4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $16,700
0.4 – 0.8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $21,100
0.8 – 1.5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $25,600
1.5 – 3.0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $30,300
3.0 – 6.0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $34,800
6.0 – 12.0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $39,200
12 – 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $43,800
25 – 50 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $48,400
50 – 100 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $52,900
100 – 200 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $57,500
200 – 400 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $62,100
400 – 800 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $66,500
800 – 1,500 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $71,100
Basis for Assessing Company’s
Membership Dues
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:
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 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.
About Materials Technology Institute
The Materials Technology Institute, founded in 1977, is a unique, not–for–profit technology
development organization representing private industry. It sponsors projects focused on
both developing new technology and transferring existing knowledge to day–to–day practice.
Practical, generic, nonproprietary studies are conducted on the selection, design, fabrication,
testing, inspection, and performance of materials of construction used in the process industries.
The scope of work includes evaluation of metallic, and non–metallic materials, optimum design
applications, fitness–for–service, mechanical integrity and life cycle determinations, and
economic factors affecting performance of vessels, tanks, piping and other components.
Through membership and networking within MTI, companies can access solutions
to nonproprietary problems of major concern to the process industries. Members can
capitalize on the extensive expertise of member company representatives, leverage their
technology investment by participating in the direction and results of MTI projects, and
utilize MTI’s books, reports, software and video training programs immediately as needed.
Benefits to member companies are increased plant integrity, reliability and profitability.
Materials Technology Institute, Inc.
1215 Fern Ridge Parkway • Suite 206 • St. Louis, Missouri 63141–4408 U.S.A.
Tel: 314.576.7712 • Fax: 314.576.6078
Email: mtiadmin@mti–global.org • Home Page: http://www.mti–global.org

2014 Annual Report - Materials Technology Institute

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