Page 137 - Challenges in Corrosion Costs Causes Consequences and Control(2015)

DATA COLLECTION AND ECONOMIC ANALYSIS 115

estimated to be $10 million in 1987. The commercial services sector, the government,
and the social and household services sectors were responsible for the largest share
(70%) of the total cost.

2.2.7 Costs of Corrosion in Other Countries
There is a brief account of the costs of corrosion in other countries such as West
Germany (1969), Finland and Sweden (1965), and India (1961).

2.2.7.1 West Germany A study of the costs of corrosion was conducted at the end
of the 1960s. The total cost of corrosion was estimated to be 19 billion Deutsch Marks
(DM) (U.S. $6 billion) for the period 1968–1969. Of this cost, 4.3 billion DM (U.S.
$1.5 billion) was estimated to be avoidable. Thus, the total cost of corrosion equiva-
lent to 3% of the West German GNP for 1969 and avoidable costs were roughly 25%
of the total corrosion costs (10).

2.2.7.2 Finland and Sweden Finland conducted a study of the cost of corrosion
in 1965, and the cost of corrosion was estimated to be between 150 and 200
million markka (U.S. $47 million and U.S. $62 million) for the year 1965. Linder-
borg referred to these losses in the paper describing factors that must be taken into
account in assessing corrosion cost (11) to Finland.
Linderborg quotes a partial study of the corrosion costs in Sweden, in which
painting expenses to combat corrosion were analyzed for the year 1964. These costs
amounted to 300–400 million crowns (U.S. $58–75 million) of which 25–35% were
found to be avoidable.

2.2.7.3 India (1961) India conducted a study of corrosion in 1961. The cost of
corrosion was estimated (12) at 1.54 billion rupees (U.S. $320 million) for the period
1960–1961. This estimate was based on calculations of expenditures for certain mea-
sures to prevent or control corrosion, including direct material and labor expenses for
protection, additional costs for increased corrosion resistance and redundancy, cost
of information transfer, and funds spent on research and development.
Corrosion control costs consisted of:

25% for paints, varnishes, and lacquers
20% for metallic coatings and electroplating
55% for corrosion-resistant metals

2.2.7.4 China (1986) Preliminary cost of corrosion was conducted in 1980
although no nationwide corrosion losses have been reported (13). A total of 148
enterprises in the chemical sector were surveyed. The comprehensive results of 10
enterprises showed an average corrosion of 4% of the annual income. The results
of another survey of an iron and steel complex indicated corrosion costs of 1.6% of
their annual income.