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Corrosion organisations investigating merger

Two of the world’s leading organisations dedicated to the protection of manufactured structures are investigating the potential of a merger.

NACE International and the Society for Protective Coatings (SSPC) are in discussions over combining the organisations to mutually benefit their members.

The organisations

Founded in 1943, NACE is the world’s largest organisation of its kind with more than 38,000 members in 130 countries. Based in Houston, US, with offices in the US, the UK, China, Malaysia, Brazil, Saudi Arabia and a training centre in Dubai, the organisation serves all industries impacted by corrosion.

SSPC was founded in 1950 as the Steel Structures Painting Council, a non-profit professional society focused on the use of protective coatings to protect industrial steel structures. In 1997, the name of the association was changed to SSPC to reflect the evolution of coatings technology and the expanding types of construction materials.

SSPC promotes the protection and preservation of concrete, steel and other industrial and marine structures and surfaces through the use of high performance protective, marine and industrial coatings. The society is the leading source of training and information on surface preparation, coating selection, coating application, environmental regulations, and health and safety issues that affect the protective coatings industry.

Based in Pittsburgh, US with offices in Saudi Arabia, Malaysia and China, more than 16,000 professionals and 420 companies worldwide carry active SSPC certifications.

Initial discussions

An initial meeting in July was deemed successful by NACE President Terry Greenfield and SSPC President Garry Manous, leading to multiple positive outcomes. Prior to these discussions, NACE and SSPC hosted an association CEO experienced in completing multiple mergers, who shared useful lessons learned and advice, which helped set a productive tone for the meeting.

During the meeting, participants from NACE and SSPC worked together to create a timeline for moving forward with the goal of having a membership vote by the second quarter of 2020. It was decided, in the interim, both organisations will provide informational webinars and small group information sessions prior to the vote to enable members to have a thorough understanding of what is involved in any cooperative relationship between the two organisations.

Team members also discussed potential governance models and transition plans, and representatives from both organisations left the meeting optimistic and agreed to continuing regularly scheduled phone calls and a second face to face meeting later this summer.

Another perspective

In August, NACE and SSPC announced they were hiring McKinley Advisors to manage the ongoing exploratory process for a potential cooperative relationship between the organisations. Through its experience with many similar transactions, McKinley has developed a thorough model to gather member and stakeholder feedback and evaluate options for collaboration.

“We invited McKinley to meet with the NACE and SSPC teams at our last meeting and quickly recognised the value their experience and knowledge brings to our discussions,” says Mr Greenfield.

“They’ve worked with many organisations who have been through this process and they’ve seen it all. They are going to be a great help to us as we navigate any challenges.”

Mr Walker says the consultancy has already assisted with decision making around the merger.

“McKinley is a respected, proven entity and they bring a neutral point of view along with their expert insight,” he says.

“It’s already helping us make effective decisions more quickly. We’re impressed with what we’ve seen so far and optimistic that this will help us make the best, most informed decisions we can on behalf of our members.”

This article was featured in October Edition of Pipelines International. To view the magazine on your PC, Mac, tablet, or mobile device, click here.

For more information visit the NACE or SSPC website.

If you have news you would like featured in Pipelines International contact Managing Editor Chloe Jenkins at cjenkins@gs-press.com.au

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