A Practical Look at Types of Corrosion and

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

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

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

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

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

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

Who is having corrosion?

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 noticed? – The product change CAUSED the problem • Wrong Application • Awareness – Customer not aware of the problem • Sabotage – Allegiance to previous supplier

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

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

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

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

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

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?

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

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

Examples of Troubleshooting

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

Example: Contamination

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

Example: Insufficient Protection

Example: Insufficient Protection • Existing, long standing customer – Vp. CI 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

Example: Contamination & Physical Damage

Example: Contamination & Physical Damage

Example: Contamination & Physical Damage • 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

Contamination • Cleaning Process – Vp. CI 422 – Vp. CI 416 – Vp. CI 377 • Carryover • Decreased p. H in 377

Example: Work In Process Corrosion

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

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

Example: Damage in Transit

Example: Damage in Transit

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

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

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

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

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

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