1. A Practical Look at Types of Corrosion and What Went Wrong Cliff Cracauer World Sales Meeting 2009

2. Outline Types of Corrosion Examined –Atmospheric  Makes up majority of claims –Microbiologically Induced Corrosion (MIC) Causes of Corrosion –Who, What, When, Where & Why Troubleshooting when a claim occurs Examples

3. Atmospheric Corrosion Necessary Elements –Presence of electrolyte –Humidity Fe is >60% RH –Others depend on: Hygroscopic Nature Atmospheric Pollutants

5. Troubleshooting Corrosion Don’t Panic –Everyone WILL eventually have a rust or corrosion issue »Emotional Issue: “The sky is falling” » * Looking for a scapegoat

6. Troubleshooting Corrosion Don’t Panic –Everyone WILL eventually have a rust or corrosion issue Use the Integrated Solutions Approach » * Identify extent of corrosion » * Look for potential causes

8. The Four Quadrants - Which category did your customer fall within Uses VCI HAS a Rust Issue Uses VCI Does NOT have Problem Does NOT Use VCI HAS a Rust Issue Does NOT Use VCI Does NOT Have Problem

9. Who is having corrosion?

10. New Customers Use “the four quadrants” –Switching from another brand to Cortec? Pre-existing problem –Was the application correct to begin with? –Was there an existing corrosion problem that was not noticed? –The product change CAUSED the problem Wrong Application Awareness – Customer not aware of the problem Sabotage – Allegiance to previous supplier

11. Established Customers Long standing customers susceptible: –Change in personnel –Cutting Corners –Product Reduction Down gauging Lower Concentration or thickness –Other extenuating circumstances e.g. Receiving party not taking care upon receipt

12. What, Where, When & How What caused the corrosion problem? Where did the corrosion initiate? When was the corrosion problem identified? How to move forward?

13. Categorize the Application Identify what is new, or what has changed –New Application –New Customer –New Facility –New Material –New Process –New Raw Material Supplier –Change of Season –New Shipping Route, or company

14. Troubleshooting Corrosion Visit the customer –Allows you to identify Who is responsible The extent of the problem –Difficult to see from a picture Emotion & Attitude of the customer Other factors involved Coordinate someone to visit the sight of the corrosion problem

15. Troubleshooting Corrosion While visiting the customer –Look for the unusual Smells Textures Purchasing habits (prior to visiting) Different people using the product Coordinate someone to visit the sight of the corrosion problem

16. Process Troubleshooting Packaging Problem –What does the corrosion look like? –Is it uniform throughout the package? –Is it isolated to one area of the package? Top of package Center of package –Is there moisture in the package?

17. Process Troubleshooting Chemical Application –What does the corrosion look like? –Is it happening immediately (flash rust)? Quality Control –Identify how they measure the product pH Refractomer Temperature –Check the quality log

18. What We Need Cortec Product used: –Batch number –Process flow chart What happens before & after product use –Sample of material from batch, or process –Pictures –Contact Data Contact Cortec Immediately – Don’t Wait –Make a joint call –Deploy someone to the end customer

19. Examples of Troubleshooting

20. Example: Insufficient Protection Heavy Corrosion Evidence of Condensation Multi-metal corrosion Don’t automatically blame competitor’s product!

21. Example: Contamination

22. VpCI 368 Applied to surfaces –Visually examined –Identified unusual occurrences 368 not clinging to vertical surfaces Pooling present Possible causes: –Contamination –Surface temperature too high

23. Example: Insufficient Protection

24. Existing, long standing customer –VpCI 322 fogged inside engine compartment No visual indication of application problem Reviewed purchase history –Using 1/10 of the appropriate amount –Resulted from personnel changes

25. Example: Contamination & Physical Damage

27. Problem: Probes enter tanks and chip away coating Solution: –Add a finish coat (MCI 2026) that significantly increased impact resistance by 200% –Increase overall coating thickness for additional protection

28. Contamination Cleaning Process –VpCI 422 –VpCI 416 –VpCI 377 Carryover Decreased pH in 377

29. Example: Work In Process Corrosion

30. Example: In Process Corrosion “Corrosion” upon receipt (right) Finished Gear (left) Shipment to Brazil

31. Example: In Process Corrosion Corrosion identified at end customer in Brazil Considered quality issue at packager Solution: –Reviewed packaging No noticeable issues –Looked at parts with corrosion –Viewed earlier process Likely cause was handling & processing issue Quality log not properly maintained

32. Example: Damage in Transit

34. Example: Existing Corrosion Chiller shipped to India Bleeding through paint Audited Entire process

35. Example: Existing Corrosion Corrosion ID by customer in India Previous Process: –Leak test –Wash –Paint Pre-treat –Paint Painting over rust No inhibitor in paint

36. Example: Existing Corrosion Added VCI to wash Used PKG during shipping –Band-aid approach Working on paint

37. Troubleshooting Corrosion Don’t “pass the buck” –Take ownership Provide a solution Become the corrosion expert –Benefits: Secure existing business Develop new business Eliminate Competition

38. Troubleshooting Corrosion Be Proactive –For existing customers: Perform regular corrosion audits Sell Integrated Solution Don’t assume everything is ok Seek opportunities Leverage relationship Increase SKUs

39. Conclusions Corrosion is inevitable –Ever customer will eventually have a problem –How you respond will determine success Utilize Integrated Solutions approach –Process –People –Product