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PA Attorney General Approves SSPC, NACE Combination

Friday, October 16, 2020

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SSPC: The Society for Protective Coatings and NACE International, The Worldwide Corrosion Authority has recently announced that the Pennsylvania Office of Attorney General has issued a statement of no objection to the combination of the two organizations.

The milestone represents the final approval required to combine the associations.

SSPC/NACE Merger History

In March 2019, the two organizations announced the beginning of merger talks. By August, the organizations announced the mutual decision to bring McKinley Advisors on board as a guiding entity for the two organizations’ merger discussions, in addition to advising the organizations through considerations related to strategic, financial and cultural barriers, among others.

At the beginning of this year, the organizations began releasing a series of updates, beginning Jan. 10, which gave a future overview of both update schedules and discussion-related milestones.

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SSPC: The Society for Protective Coatings and NACE International, The Worldwide Corrosion Authority has recently announced that the Pennsylvania Office of Attorney General has issued a statement of no objection to the combination of the two organizations.

The following week (Jan. 17), the associations announced a second update regarding certificate considerations and answers to some of the bigger questions involving this particular aspect of the merger efforts.

According to that update, the SSPC-NACE Task Group was focusing on minimizing disturbance to the industry and wished to maintain overall program quality and continuity.

The week after, the organizations released part one of the membership considerations update, and they released a fourth update regarding standards used by industry professionals worldwide.

At the beginning of February, during SSPC’s Coatings+ 2020 conference, SSPC’s Board of Governors unanimously voted to continue discussions and bring the creation of NewOrg and NewOrg Institute—both developments have yet to be named—to a member vote.

The NewOrg is slated to be a 501(c)(6) organization, while NewOrg Institute would meet 501(c)(3) requirements. Each organization will serve specific functions, but members will have access to both entities, and several functions will be conducted by both entities.

Prior to the end of the month, the organizations released their seventh update, which covered education, and an eighth update regarding the part two of the membership component of the agreement, along with a question-and-answer forum.

In April, the organizations opened a two-week-long voting period to its members after more than a year of discussions between the leadership of both organizations. The voting period closed on April 17, revealing that 88.3% of SSPC members and 89% of NACE members voted in favor of the merger.

“This was a vote of historical importance to SSPC members and to the coatings and corrosion industries,” said former SSPC President Joseph Walker.

“The level of engagement and interest throughout the process and the impressive showing for the vote demonstrates the enthusiasm the industry has for the potential of this combination. I look forward to working with my colleagues at NACE as we move forward on creating this new organization.”

Former NACE President Terry Greenfield added at the time: “With what is clearly a resounding ‘yes,’ the NACE membership has spoken. As a member and as NACE’s president I could not be more excited with this result. This will bring more benefits and resources to the members of both organizations and it will have a strong and positive impact on the coatings and corrosion profession worldwide.”

According to the previous updates, the organizations had decided that members will become “NewOrg members,” having full access to both entities, including equal voting and volunteer rights and privileges in both organizations.

The hybrid structure is reported to include valued-based individual and corporate memberships where members can choose their level of benefit and corresponding dues. However, individual members will be able to choose between Core and Premium tiers, with Premium being the higher of the two and including select standard downloads, digital library products and publication subscriptions.

The updates also noted that all current NACE and SSPC individual members will become members of “NewOrg” Premium Individual Membership for the remainder of their current membership term starting on Jan. 1, 2021. Upon expiration, members will be able to choose to renew at either the Premium or Core level of membership.

As for corporate memberships, there is also slated to be a three-tiered, value-based structure. Benefits include free individual memberships, conference registrations and prominent marketing exposure at conferences, and training workshops, among others.

In terms of leadership, NACE CEO Robert H. Chalker was tapped to lead the new, combined organization at the beginning of May.

In July, the associations announced the formation of 13 ad-hoc integration teams to begin combination efforts of the two organizations. The teams were reportedly appointed by the SSPC-NACE Steering Committee and consist of members and staff from both organizations. Each team is focused on a different area of the associations’ operations and services.

The teams are as follows:

  • Transition Team – will consider and approve plans and recommendations made by the other integrations teams as well as discuss other topics as they arise;
  • Accreditation Team – will develop accreditation recommendations for review and approval;
  • Brand Team – will develop NewOrg’s brand and visual identity;
  • Certification Team – will develop certification recommendations for review and approval;
  • Chapters/Sections Team – will develop recommendations for consolidating chapters/sections and establishing communities for NewOrg stakeholders;
  • Conferences and Events Team – will develop conference and events recommendations for review and approval;
  • Education Team – will develop education recommendations for review and approval;
  • Finance and Accounting Team – will develop a plan for integrating accounting structures and a financial strategy for NewOrg;
  • Governance Team – will review and provide feedback on governing documents and support strategic planning and research;
  • IT Infrastructure Activities Team – will develop IT infrastructure recommendations for review and approval;
  • Pre-Professional Activities Team – will develop pre-professional activities recommendations for review and approval;
  • Publications Team – will develop publications recommendations for review and approval; and
  • Standards Team – will develop recommendations for the standards development process and multi-year transition plan for existing standards.

And in August, a schedule and registration was posted for a slew of town hall meetings that the organizations say are meant to keep members informed about the ongoing steps to combine into one organization.

Remaining town halls include:

  • Nov. 10, 6 a.m. CT;
  • Nov. 12, 1 p.m. CT;
  • Dec. 14, 10:30 a.m. CT; and
  • Dec. 17 6 a.m. CT.

For more information and to register for the events, click here.


Tagged categories: Asia Pacific; Business management; Business matters; Business types; EMEA (Europe, Middle East and Africa); Latin America; Mergers; NACE; NACE; North America; Program/Project Management; SSPC; SSPC NACE Merger; Z-Continents

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