2017 Award Nomination

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1 Title of Innovation: PreCoat F31/ Award Nomination Nominee(s) AD Chemicals Category: Other Grit/sand blasting Dates of Innovation Development: Development phase from 2008 till 2015, 2016 launched on the market Web site: Summary Description: Currently, AD Chemicals, a subdivision of the Dutch AD, International launches a revolutionary new product on the global grit/sand blasting market. This product is called PreCoat F31/20 suitable for the treatment of substrate steel and PreCoat Z31/20 for the substrates aluminum and galvanized steel. PreCoat is a chemical treatment applied directly after grit/sand blasting or metallization (also referred to as metal spraying). This product portfolio is the result of an R&D trajectory of more than 8 years. PreCoat F31/20 and Z31/20 significantly improve the quality of sandblasted or metallized products. It has two main benefits; by applying the product directly after grit/sand blasting, a conversion layer is created that substantially improves the adhesion of the painting system (suitable for wet painting and powder coating) and significantly enhances the corrosion-protection resistance properties of the paint system as a whole. The application procedure of PreCoat is very easy and can be easily integrated in every business process. The innovative aspect of these products is that it combines the worlds of grit/sand blasting and chemical pre-treatment. A metal surface treatment of grit blasting ensures an uniformly cleaned 5

2 surface and good paint adhesion but lacks corrosion resistance on the substrate. PreCoat F31/20 and Z31/20 are based on PreCoat Z31, a product that won the Dutch Innovation Award for surface treatment, ION Borghardt Award AD Chemicals is introducing this product on the worldwide market. The first user responses are very promising. A large grit/sand blasting company in the Netherlands stated: With this product I am able to improve to overall quality of my products and therefore offer my customers more value. It is a tool to distinguish myself in a competitive market place Besides that the responses from our agents in Spain and the UK are very promising. As products are better protected against corrosion, the product lifetime increases and thereby lowers the ecological footprint. 6

3 Full Description: (Please provide complete answers to the questions below. Graphs, charts, and photos can be inserted to support the answers.) 1. What is the innovation? See page How does the innovation work? See page Describe the corrosion problem or technological gap that sparked the development of the innovation? How does the innovation improve upon existing methods/technologies to address this corrosion problem or provide a new solution to bridge the technology gap? See page 3 4. Has the innovation been tested in the laboratory or in the field? If so, please describe any tests or field demonstrations and the results that support the capability and feasibility of the innovation. See page How can the innovation be incorporated into existing corrosion prevention and control activities and how does it benefit the industry/industries it serves (i.e., does it provide a cost and/or time savings; improve an inspection, testing, or data collection process; help to extend the service life of assets or corrosion-control systems, etc.)? See page 6 6. Is the innovation commercially available? If yes, how long has it been utilized? If not, what is the next step in making the innovation commercially available? What are the challenges, if any, that may affect further development or use of this innovation and how could they be overcome? Yes, see document 7. Are there any patents related to this work? If yes, please provide the patent title, number, and inventor. See page 19 7

4 PreCoat Z31/20 PreCoat F31/20 Innovation for the grit/sand blasting industry Date October MP Corrosion innovation award PreCoat: Innovation for the grit/sand blasting industry Nominee: AD Chemicals Markweg Zuid SN Heijningen The Netherlands +31 (0) Contact person Roland Schellen (Sales & Marketing)

5 Index Innovation through crossovers... 3 The idea was born (technological gap)... 4 Market potential... 4 Product characteristics PreCoat... 5 Easy application procedure... 6 Why use PreCoat... 7 Effects of PreCoat Z31/20 on galvanized steel and aluminum... 8 Effects of PreCoat F31/20 on steel... 8 Test results... 9 Test Methods... 9 Test results PreCoat Z31/20 : Galvanized steel, Sendzimir Test results PreCoat Z31/20: Aluminum Test results PreCoat Z31/20: Metallized steel Test results PreCoat F31/20: Steel Conclusion tests The triple bottom line People: free of substances of high concern Value chain optimization GSB and Qualicoat standards Planet: extending the product life cycle Replacement of chromium(vi) based primers Ecological footprint: added value for architects Profit Patent Overview differences regular grit/sand blasting and grit/sand blasting with PreCoat treatment About AD Chemicals

6 Innovation through crossovers AD International is a knowledge-driven company and, as a result, R&D is taking an increasingly prominent place in the organization. The company has a strong R&D department comprising people from various chemical backgrounds, creating a healthy ecosystem for crossovers that can lead to new insights into both existing and new products. Currently, AD Chemicals, a subdivision of AD International launches a revolutionary new product on the global grit/sand blasting market. This product is called PreCoat F31/20 and is suitable for the treatment of steel substrates and PreCoat Z31/20 for the substrates aluminum and galvanized steel. This product portfolio is the result of a R&D trajectory of more than 8 years. What is the innovation? PreCoat is a chemical treatment applied directly after grit/sand blasting or metallization. PreCoat F31/20 and Z31/20 significantly improve the quality of grit/sandblasted or metallized (also referred to as metal spraying or metallization) products. It has two main benefits; by applying the product directly after grit/sand blasting, a conversion layer is created that substantially improves the quality of adhesion of the painting system (suitable for wet painting and powder coating) and significantly enhances the corrosion-resistance properties of the paint system as a whole. The application procedure of PreCoat is very simple and can be easily integrated in every business process. The innovative aspect of these products is that it combines the worlds of grit/sand blasting and chemical pre-treatment. A metal surface treatment of only grit/sand blasting only ensures a good paint adhesion and does not create corrosion resistance prior to coating the substrate. Furthermore, the product is free of hazard labels and is chromium (VI)- free. The correct use of PreCoat will thus not have a negative effect on people on their environment. PreCoat F31/20 and Z31/20 are based on PreCoat Z31, a product that won the Dutch Innovation Award for surface treatment, ION Borghardt Award AD Chemicals is introducing this product on the worldwide market. The first user responses are very promising. A large grit/sand blasting company in the Netherlands stated: With this product I am able to improve to overall quality of my products and by doing that offer my customers more value. It is also a tool to distinguish myself in a competitive market place The responses from our agents in Spain and the UK are also promising. Because products are better protected against corrosion, the product lifetime increases and the so called ecological footprint is lowered. 3

7 The idea was born (technological gap) As mentioned before, there is a strong technology cross over between the different business units of AD International. This leads to new insights and innovations for both existing and brand new products. The idea for PreCoat Z31/20 and F31/20 was born out of a request/business case from one of the large Spanish clients of AD that uses a chemical treatment to passivate galvanized steel and aluminum prior to shipping overseas to Latin America. During this same period market investigation at existing clients that used grit/sand blasting indicated that there was a strong interest for a product that could improve the quality of their end products, corrosion technically wise. That is the moment that our R&D department came up with the idea to apply the passivation knowledge for (galvanized) steel to fulfill this clear market demand. The development phase of PreCoat was born. Therefore this year, almost 8 years later, AD Chemicals proudly introduces the PreCoat F31/20 and Z31/20 product line on the market. The market potential for this product is enormous because it can be easily integrated in the business process of almost all metal grit/sand blasting companies worldwide that want to further improve their quality. Another benefit for companies to start using PreCoat is that it ensures them a better overall quality and therefore claims and complaints will most certainly decrease. An argument that is important for their guarantee procedures. Additionally, at this very moment there is a strong call in different sectors for stopping with chromium(vi) based primers. Chromium(VI) will be banned in Europe per September 2017 for many applications, in accordance with European REACH legislation. For this reason many paint suppliers are looking for alternative methods for these chromium(vi) based primers to enforce corrosion resistance on metals. PreCoat has the potential to fill this gap/ market need. Market potential To demonstrate that the market potential for this product line is enormous. We can have a look at the Benelux market (Netherlands/Belgium) for grit/sand blasting and coating. Market research of AD international shows that only in the Netherlands itself already more than 1000 potential customers exist for this product. Just imagine the potential worldwide. 4

8 Product characteristics PreCoat The most important product characteristics of PreCoat Z31/20 and F31/20 are summarized in table 1 and 2 Table 1: Characteristics PreCoat Z31/20 Characteristics PreCoat Z31/20 Chromium (VI) free Free of substances of high concern (no labeling, not dangerous for the environment) Easy 3 step application method (see picture) Can be applied manually or within an automated process Multi-metal: suitable for galvanized steel and aluminum In compliance with GSB, Qualicoat and Qualisteelcoat international quality standards Table 2: Characteristics PreCoat F31/20 Characteristics PreCoat F31/20 Chromium (VI) free Free of substances of high concern (no labeling, not dangerous for the environment) Easy 3 step application method (see picture) Can be applied manually or within an automated process Suitable for steel In compliance with Qualisteelcoat international quality standard 5

9 Easy application procedure The PreCoat Z31/20 and F31/20 procedure can be integrated easily in every grit/sand blasting companies its business processes. It is applied directly after grit/sand blasting or metal spraying. The complete procedure is displayed in image 1: The application procedure. The procedure is the same for PreCoat Z31/20 and F31/20. Image 1: Application procedure PreCoat F31/20 6

10 Why use PreCoat PreCoat Z31/20 and F31/20 create a conversion layer. This conversion layer is an coating layer that is formed on the metal itself. It is a protective surface layer on the metal and is created by a chemical reaction between the metal (substrate) and a chemical solution. In this process the metal itself contributes to creating this layer. A conversion layer has two types of benefits. It improves the corrosion resistance properties and ensures good paint adhesion for organic coatings. The thickness of a conversion layer is indicated in milligrams of conversion layer of conversion elements per square meter. In most cases this layer is to thin to be measured by common coating thickness gauges (thickness meters0. The layer is ultrathin in comparison with regular paint coating layers which have a layer thickness of about µ. Please also refer to image 3 that shows a graphical representation of a conversion layer. Important to mention here is that one should not confuse a conversion layer with a regular coating layer such as for example a primer. The conversion layer reacts chemically with the metal surface itself and therefore converts the surface something a coating layer does not realize. Conversion layer PreCoat Z31/20 The conversion layer that is created by PreCoat Z31/20 has an additional benefit. Next to paint adhesion and corrosion resistance it also creates a passivation layer. This means that the metal substrate itself will get bare corrosion resistance. The direct benefit for grit/sand blasting companies is that galvanized steel and aluminum do not have to be coated directly after grit/sand blasting. Directly coating after grit/sand blasting is common practice. Not having to do that, as a benefit of having a passivation layer that gives corrosion resistance, enables companies to create a buffer in their production line. The main advantage is that they than can for example coat all products at once. Which can result in a major improvement in productivity. PreCoat Z31/20 offers up to several days of passivation protection. Image 2: Conversion layer 7

11 Effects of PreCoat Z31/20 on galvanized steel and aluminum Galvanized steel By applying PreCoat Z31/20 the following benefits are acquired for the end product: Creation of a conversion layer o Paint adhesion layer for organic coatings (powder coating and wet painting), o Protection against corrosion and reduced underceep corrosion Passivation properties o Materials are passivated and have bare corrosion resistance up to several days Aluminum By applying PreCoat Z31/20 the following benefits are acquired for the end product:: Creation of a conversion layer o Paint adhesion layer for organic coatings (powder coating and wet painting), o Protection against corrosion and reduced underceep corrosion Effects of PreCoat F31/20 on steel Steel By applying PreCoat Z31/20 the following benefits are acquired for the end product: Creation of a conversion layer o Protection against flash rust o Paint adhesion layer for organic coatings (powder coating and wet painting), o Protection against and reduced undercreep corrosion 8

12 Test results In this chapter the field and laboratory testing will be explained. Test Methods To objectively determine the corrosion resistance and paint adhesion properties extensive testing according to international standards is required. In metal surface treatment there are two types of tests common practice. The tests executed to verify the effects of PreCoat are summarized below. Paint Adhesion Cross hatch, conform EN ISO 2409 / ASTM D3359 Bolling test / wet adhesion Impact test, in accordance with EN ISO / ASTM D2794 / EN Corrosion protection Machu corrosion test o The Machu test, also known as accelerated corrosion test on test panels and construction parts according to Qualicoat specifications. The test is made in a warm environment. To create this environment the test panels are placed in the plastic container, which is placed in the Machu Test Bath. The test panels need to be scratched crosswise with a 1mm cutting tool before placing them in the warm moisture test chamber. The fluid content, temperature and remain time are specified Salt spray testing o Salt spray testing is an accelerated corrosion test that produces a corrosive attack to coated samples in order to evaluate (mostly comparatively) the suitability of the coating for use as a protective finish. The appearance of corrosion products (rust) is evaluated after a pre-determined period of time. Test duration depends on the corrosion resistance of the coating; generally, the more corrosion resistant the coating is, the longer the period of testing before the appearance of corrosion/ rust. The salt spray test is one of the most widespread and long established corrosion tests. The salt spray tests are executed in accordance with ISO9227/ Din50021/ ASTM B117. 9

13 Test results PreCoat Z31/20 : Galvanized steel, Sendzimir Substrate and type of tests HDG Corrosion tests: Powder coating without primer (70 μm) Hot Dip Galvanized steel (500-hours corrosion test) Only grit/sand blasting Grit/sand blasting with PreCoat Z31/20 treatment Automatic Manual blasting process Automatic blasting process Paint adhesion test: Sendzimir Corrosion tests: Powder coating without primer (70 μm) Sendzimir (500- hours corrosion test) Automatic blasting process Automatic blasting process Paint adhesion test: 10

14 Test results PreCoat Z31/20: Aluminum Substrate and type of tests Aluminum Corrosion tests: Powder Coating without primer (70 μm) aluminum (1000- hour corrosion test) Only grit/sand blasting Grit/sand blasting with PreCoat Z31/20 treatment Automatic blasting process Automatic blasting process Paint adhesion test: 11

15 Test results PreCoat Z31/20: Metallized steel Substrate and type of tests Metallized steel/ Metal sprayed steel Corrosion tests: Powder coating with primer (180 μm) metallized steel, 1000 hours corrosion test Only grit/sand blasting Grit/sand blasting with PreCoat Z31/20 treatment Manual blasting process Manual blasting process Paint adhesion test: 12

16 Test results PreCoat F31/20: Steel Substrate and type of tests Only grit/sand blasting Grit/sand blasting with PreCoat F31/20 treatment Steel (type DC01) Corrosion tests: Powder coating without primer (80 μm) steel (DC01) (500-hour corrosion test) Automatic blasting process Automatic blasting process Paint adhesion test: Steel (type DC01) Corrosietest: Powder coating 2- layer system(epoxy primer,polyester coating, 120 μm) steel (DC01) (500-hour corrosion test) Automatic blasting process Automatic blasting process Paint adhesion test: 13

17 Conclusion tests AD Chemicals PreCoat Z31/20 and F31/20 achieve significantly better results on corrosion resistance and paint adhesion than the traditional grit/sand blasting and coating procedure. This results in a higher quality product. 14

18 The triple bottom line The triple bottom line consists of social equity, economic, and environmental factors. "People, planet and profit" these describe the Triple bottom line and the goal of sustainability. In this chapter you can read how PreCoat contributes to the bottom line. People: free of substances of high concern PreCoat is free of substances of high concern (no dangerous labeling). Safety of people is very important at AD International and because working with PreCoat involves working with chemicals we prescribe the following working procedure: TDS PreCoat PreCoat is used on grit/sand blasted material in order to improve corrosion properties and to achieve a long-lasting adhesion between the substrate and powder coating / wet paint system. PreCoat is an active metal surface treatment and has an acid character. PreCoat is sprayed over the substrate, wherein aerosols may be present. Therefore it is important to recognize the risks associated with acidic products and apply proper safety procedures in order to create a safe working environment. This includes providing of personal protective equipment (PPE) and / or adequate ventilation of the working place. The residual product after treatment of the substrates needs to be to avoid contamination. Waste water treatment Residuals have to be treated in accordance with local standards and regulations and be discharged. Furthermore, AD always trains product applicators in correct, safe and responsible handling of its products. 15

19 Value chain optimization For a chemical supplier as AD Chemicals contact with the complete supply chain is very important. New innovations can only be introduced successfully on the market place if all players in the market accept the new technology. Important chains in the value chain are displayed in figure 1 below, that shows the value chain of a grit/sand blasted product. Figure 1: value chain Certification/ Approval of independent institutes End product Applicator Coating supplier Chemical treatment supplier What can be seen in this figure is that there is an important link between the applicator, coating supplier and chemical treatment supplier. To create the most optimal performance of chemistry the applicator needs to prepare the substrate correctly with in this case grit/sand blasting or metallization. Afterwards he needs to apply the pre-treatment chemicals and finally the paint system. When applied correct each chain enforces the other to create a robust system. Furthermore, in order to be completely accepted by the market, a system also needs a certification or quality label according to for example GSB, Qualicoat or Qualisteelcoat. This is an important reason that AD works closely together with applicators for introducing the product on het market. Next to that we are having conversations with major paint suppliers. By doing this we want to make sure that PreCoat will successfully find its place in the market. 16

20 GSB and Qualicoat standards Because testing and certification, plays such an important role in the value chain, AD did take these standards into account during product development. Therefore the products meet the requirements of Qualicoat, Qualisteelcoat and GSB standards. Unfortunately an actual certification according to GSB or Qualisteelcoat is not possible at this time because only a complete coating system can be certified, not the chemicals themselves. Unlike Qualicoat where it can be obtained on the chemistry itself. Currently AD talks with relevant institutes to see if approval can be achieved. Planet: extending the product life cycle As mentioned in the chapter with the test results PreCoat Z31/20 and F31/20 significantly improves paint adhesion and corrosion resistance of coated products. This makes an extended product lifecycle possible. How long this extended lifecycle really is, will be determined in projects at end customers the upcoming years. Let us just summarize several occasions in which corrosion resistance is of utmost importance. Damage that occurs to the coating during transport Damage that occurs to the coating during installation Damage that occurs to the coating in heavy duty environments (offshore, outside, sea, industry etc.) Damage that occurs during usage Replacement of chromium(vi) based primers At this very moment there is a strong call in different sectors for stopping with chromium(vi) based primers. Chromium(VI) will be banned for many applications, in accordance with European REACH legislation in Europe per September For this reason many paint suppliers are looking for alternative methods to enforce corrosion resistance on metals. PreCoat has the potential to fill this gap/ market need. Ecological footprint: added value for architects In Europe the sustainability of products is determined by the so called LCA-value (Life cycle analysis). LCA s are important for construction materials that need Environmental Product Declarations (EPD). These declarations are of importance in the environmental evaluation of a product as is executed by architects in calculating the ecological footprint of their design. The expectation of AD is that the PreCoat products will score very high on these criteria because of the extended product life cycle. 17

21 Profit Competitive advantage, USP, product differentiation Market research executed by AD shows that usage of PreCoat can create a clear competitive advantage for grit/sand blasting and coating companies. This is because they can tell in their sales presentation to potential customers that they use a product that is in compliance with GSB, Qualicoat and GSB standards, a product that significantly improves the end quality achieved. These are arguments grit/sand blasters who not use PreCoat cannot bring to the table. Another interesting angle that we discovered in our market research is that some companies use it as a way to differentiate their products. They sell it as a treatment positioned between metal spraying and normal grit/sand blasting. If this adopted by the market this would mean a complete new segment within the grit/sand blasting market. Pricing AD places PreCoat Z31 / 20 and F31 / 20 on the market with an attractive pricing strategy. Therefore the application of PreCoat will be many times cheaper than applying for example an additional regular coating layer. This makes this innovation affordable for almost every company and therefore we expect that our client portfolio will grow rapidly. More efficient production, leverage the passivation properties of PreCoat Z31/20 As discussed earlier, on the substrate galvanized steel, PreCoat Z31/20 also creates a passivation layer. Due of the passivation layer products to be coated can be saved/buffered up to a couple of days prior to coating. In the current situation objects have to be coated within a couple of hours after grit/sand blasting because otherwise white rust/corrosion will occur on the surface. Creating a buffer means a chance for companies to optimize their production and coating processes in order to handle more products efficiently. An example from a grit/sand blaster: 1. Grit/sand blast al the products to be coated 2. Coat al products at once 18

22 Patent Because of the uniqueness of this product we patented the technology Overview differences regular grit/sand blasting and grit/sand blasting with PreCoat treatment Table 3: Overview differences Regular grit blasting/ metalising Grit blasting/ metalising with precoat Substrates Galvanized steel, aluminum, steel Galvanized steel, aluminum, steel Product lifetime + ++ Corrosion protection + ++ Paint adhesion + ++ In compliance with quality standards Patented YES 19

23 About AD Chemicals Improved adhesion, corrosion resistance and cost effective processing Meeting expectations through broad based expertise in depth knowledge and state of the art facilities Certified products and processes from a full service partner AD Chemicals, a division of AD International (founded in 1974), has more than 40 years of experience in developing, manufacturing and supplying a wide range of metal surface pre-treatment chemicals used in batch process, spray, bath and cascade application systems. Pre-treatment is an essential process on aluminum, hot dip galvanized steel, steel and multi-metals products that are coated or anodized to provide a durable and attractive finish. Pre-treatments have a huge range of requirements on a complex combination of substrate forms and materials. This drives the need for close working relationships, consultation, testing and pilot line experimentation. Furthermore, AD Chemicals has its own state of the art laboratory to perform Research & Development activities and customer specific application tests. The team of AD Chemicals consists out of highly educated and skilled research with broad knowledge about the chemical industry and its processes. AD Chemicals draws knowledge and expertise from across the range of AD International disciplines to provide customers with the best possible advice from a leader in its field. This results in robust and reliable processes that are efficient and cost effective. Many surface treatment operations desire certification by industry organizations, especially when applied to new and technically driven products. Customers have come to rely on AD Chemicals to assist in or lead the certification process. All AD Chemicals products meet or exceed current market standards such as GSB, Qualicoat, Qualisteelcoat, Qualanod and MIL. 20

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