Client Visit Report



INTERNATIONAL CORROSION COST FACTS

According to NACE International, one of the world’s leading authorities on corrosion engineering and control, corrosion costs are 3.1% of GDP for an industrial economy.

The figures are based on US Government funded research that analysed a number of key sectors:

• Infrastructure

• Utilities

• Government

• Transport

• Manufacturing

Detailed analysis, released in 2002, was undertaken to establish costs within each sector and calculate the cost to the US economy, resulting in the figure of 3.1%, which NACE calculates is applicable to all developed economies.

United Kingdom

GDP (2008): $2,279 billion

Annual cost of corrosion: $70.6 billion

Malaysia

GDP (2009): $207.4 billion

Annual cost of corrosion: $6.7 billion

Australia

GDP (2009): $920 billion

Annual cost of corrosion: $70.6 billion

USA

GDP (2007) $13,840 billion

Annual cost of corrosion: $429 billion

All figures US Dollars

NACE figures:

GDP figures:

Every year more than $20 billion is spent on bolts and fasteners alone (NACE 2002)

Reports from the North Sea indicate that many bolts are corroding before an installation has even been commissioned with cadmium plated bolts failing after only one year and PTFE coated bolts failing within weeks.

BP in the UK showed costs between £150,000 and £250,000 for retrospective bolt preservation on each of their North Sea assets (BP 2000).

Around the world there are more than 7,000 offshore oil & gas installations in place, many of which will have to be decommissioned in the coming years and decades. Over the next 10-20 years, an average of 15-25 installations are expected to be abandoned annually. In addition several thousands of kilometres of pipelines will have to be removed, trenched or covered. The continental shelf bordering the states of the European Community and Norway has more than 600 offshore oil and gas platforms and several thousand kilometres of pipelines.

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A&E Systems Limited

3 Charles Wood Road, Dereham, NR19 1SX, UK

Tel: +44 (0)1362 694915 Tel: +44 (0)1362 695350

Company Registration No: 6271390

ABN 46 125 113 733

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