PROTECTIVE & MARINE COATINGS

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PROTECTIVE & MARINE COATINGS PPG/Warren Safe-T Plus Single Coat Rapid Return to Service Epoxy 08/25/10

Business Case for Single Coat Paints Review U. S. Navy Goals Single Coat and Rapid Cure coatings for tank and void corrosion control Applicable to all tanks and voids within the U.S. Navy 15,000 tanks and voids (~129,000,000ft2) 1,612,000 gallons of coating required for preservation $250M per year to preserve tanks and voids in fleet using current materials and processes U. S. Navy Achievements Single Coat coatings now approved and specified for Class 5 (fuel), Class 7 (ballast) and Class 11 (boiler/reserve feed water) Single Coat in Class 13 and 13/18 (CHT) Single Coat in Class 9 (potable water)

Business Case for Single Coat Paints Background Business case based on paint only. Service Life issues are not addressed, but would favor high-solids and single coat products. Solvent based paints (Amercoat 235 or MIL-DTL-24441) 5-7 years in ballast tanks 100% Solids paints (Amercoat 133) 15-20 years in ballast tanks 100% Solids, single-coat paints (Safe-T Plus) 15-20 years in ballast tanks Cure Class Standard Cure Rapid Cure Single Coat Coating Chemistry Traditional solvent based or solvent free epoxy Solvent free epoxy using enhanced curing agents Polyurethane and Polyurea with low catalyst levels

Single Coat Production Requirements Surface Preparation Same industry standard as for legacy (24441) and high solids (23236) SSPC SP-10 (Sa2-1/2) near white metal Soluble salts <3μg/cm2 or conductivity <30μS-cm Employs standard commercial process/equipment Environmental Controls Same industry standard as for legacy and high solids Relative humidity <50% using commercial dehumidification Application Commercial standardized plural component equipment (COTS) Same equipment as for high solids. Equipment introduced to yards beginning in 1998 Nearly all commercial applicators are certified

The PPG Choices for Fuel, Ballast, Reserve Feed Water, CHT and Potable Water Tanks 216 hours to Completion 36 hours to Completion Traditional Cure UHS Coating, Ameron 133/333 MIL-PRF-23236, Type VII (Prime, Stripe, Topcoat) Rapid Rapid Cure Cure PPG/Warren PPG/Warren SAFE-T SAFE-T PLUS PLUS Single MIL-PRF-23236, Coat Rapid Type Cure VII Coating Single Coat Rapid Cure Coating *Times include Touch-up Application of Rapid Cure Coatings, 2 Full Coats & Stripe 90 Hrs *

Fleet Wide Cost Savings Using Single Coat, Rapid Cure Coatings Based on Remaining Composite Service Life* Ship Class # of Ships Average Availabilities Remaining for Class Availabilities per Year # of Tanks Preserved at Each Class Availability Cost Using Legacy System Cost Using Rapid Cure Cost Savings CVN 11 34 1 200 $29,150,000. $14,025,000. $15,125,000. DDG 51 408 10 350 $23,187,500. $11,156,250. $12,031,250. FFG 38 76 10 200 $10,600,000. $5,100,000. $5,500,000. CG 22 22 10 150 $9,937,500. $4,781,250. $5,156,250. DD 4 4 10 100 $6,625,000. $3,187,500. $3,437,500. LHD 6 11 3 70 $27,825,000. $13,387,500. $14,437,500. LHA 5 6 3 70 $27,825,000. $13,387,500. $14,437,500. LSD 12 43 4 80 $16,960,000. $8,160,000. $8,800,000. LPD 9 11 7 4 40 $8,480,000. $4,080,000. $4,400,000. LPD 17 5 30 2 80 $16,960,000. $8,160,000. $8,800,000. TOTAL 165 $177,550,000. $85,425,000. $92,125,000. *Projections do not include: 1) Submarines due to complexity of maintenance requirements and cycles, however rapid Cure coating benefits as shown in this program are under investigation by SEA 07 and 92T 2) Auxiliary ships or MSC ships with varied contracts and schedules. REFERENCE- Office of Naval Research

Looking Aft 15 Month Inspection (US Navy Ship Oakhill)

The PPG/Warren SAFE-T Plus coating system in this tank, SWB 3-121-1-W, was in excellent condition, with far less than 1/10 of 1% corrosion noted at 15 month inspection. from Navy Inspection Report. US Navy Ship Oakhill

New York Aqueduct 2 Year Inspection

16 year Inspection New York Aqueduct, May 12 th 2010 of Warren SAFE-T PLUS. Inspection performed by Parsons Brinckerhoff, New York Office. The Single Coat, 40 mil

QPL Certified US Navy MIL-PRF-23236, Type VII Classes 5/18, 7/18, 11/18, Grade C

SAFE-T PLUS TYPICAL PROPERTIES Liquid Properties: Mix Ratio 2:1 by volume Viscosity (ASTM 3278 Method A) 5000-10,000 cps Volume Solids (ASTM D 2697) 98 ± 2%* Weight Solids (ASTM D1475) 98 ± 2%* Thixotropic Index 4.0-5.0 Specific Gravity: ~1.12 Flash Point (Closed Cup): >235 F Color: off white, buff, gray, OAP blue Gel time (200g @ 77 F) 27 min. Thin Film Set (@ 77 F) 2 hours Thin Film Set (@ 40 F) 8 hours Shelf Life 3 year (unopened, dry, cool) Storage Requirements 40-100 F VOC (EPA Method 24) <0.54 lb./gal.; 64.7 g/l Coverage (@ 20 mils) 80 ft.2 Coverage (@ 30 mils) 60 ft.2 Physical Properties: Tensile Strength (ASTM D638-86) 7000 psi Glass Transition Temperature (ASTM D3418-82) 151 F (avg.) Tensile Elongation @ Break 4.8% Shore D Hardness > 80 Qualifications: MIL-PRF-23236, Type VII, Class 5/18, Grade C MIL-PRF-23236, Type VII, Class 7/18, Grade C MIL-PRF-23236, Type VII, Class 11/18, Grade C MIL-PRF-23236, Type VII, Class 13/18, Grade C, Pending MIL-PRF-23236, Type VII, Class 9/18, Grade C, NSF Testing in progress Dry Time Dry to Recoat (min.) Maximum Recoat 90 F (32 C) 70 F (21 C) 50 F (10 C) 2 hours 4 hours 8 hours 14 days 14 days 14 days Dry to Handle 1.5 hours 2 hours 8 hours Full Service 24 hours 36 hours 48 hours