Union Carbide Corporation

Union Carbide Corporation

39 Old Ridgebury Road
Danbury, Connecticut 06817
U.S.A.
(203) 794-2000

Public Company
Incorporated: November 1, 1917
Employees: 91,459
Sales: $6.343 billion
Market value: $3.703 billion
Stock Index: New York Amsterdam Basle Brussels
Frankfurt Geneva Lausanne London Paris Zurich

In 1876, the first carbon arc street light changed light into day in Cleveland, Ohio with the help of Charles F. Brush. As a result of this invention, a company was formed in 1886 to make street light carbons and later carbon electrodes for electric furnaces. Soon the Eveready trademark became a part of this company. Four years later, it produced the first commercial dry cell battery and then, in 1894, built one of the first industrial research laboratories in the United States.

Meanwhile in North Carolina in 1892 two men attempted to make aluminum in an electric furnace. Thomas L. Willson and Major James T. Morehead produced calcium carbide, resulting in acetylene. These two chemicals were considered mere laboratory curiosities at the time, but Morehead convinced several Chicago entrepreneurs in the use of acetylene for city and home lighting, and the Union Carbide Company was formed in 1898 to manufacture calcium carbide. Morehead didn’t give up hope for his electric furnace idea. In fact, in 1897, he, with the help of Guillaume de Chalmot, produced America’s first commercial high-carbon ferrochrome and furnished ferrochrome for armorplate during the Spanish-American War.

Electric lighting became practical during this time, eliminating any expansion for Union Carbide’s acetylene lighting business. But their calcium carbide plants continued to operate in Sault Ste. Marie, Michigan and Niagara Falls, New York. In 1900 their capital stock was $6,000,000, par value $100. Dividends were at 4 percent, with Charles F. Dieterich as president, George O. Knapp as vice president, and A.B. Proal as secretary and treasurer. Their main office was located in Chicago, Illinois. In 1906 the company purchased an alloys business and a metals research laboratory, and established a separate division to produce alloys for steelmaking. Under the direction of Dr. Fredrick M. Becket, its chief metallurgist, the new company began a line of alloying metals that were respected in the field. One example is their creation of low-carbon ferrochrome, resulting in the development of modern stainless steels.

The discovery in France of a hot metal-cutting flame resulting from burning acetylene in oxygen, created a high demand for such resources. Charles Brush interested several electrode producers in forming the first oxygen-producing company in 1907. This company later became the Corporation’s present Linde Division. In 1911, Union Carbide bought interest in the oxygen company, therefore bringing together for the first time the carbon and carbide interests.

Union Carbide’s major competitor during this period was the Prest-O-Lite Company, the largest single purchaser of calcium carbide for acetylene lamps for automobiles. When an alternative form of acetylene was requested, Dr. George O. Curme, Jr. was hired by Prest-O-Lite in 1914 to find it. He consulted scientists from the Linde Company and Union Carbide to conduct research on the gas. The cooperative efforts resulted in the formation of the Union Carbide and Carbon Corporation in 1917.

The government’s need for ethylene during the World War I regenerated interest in hydrocarbon byproducts. In 1919 the first production of synthetic ethylene began. Dr. Curme and his associate, James A. Rafferty, predicted a future need for synthetic organic chemicals, and America’s petrochemical industry and the Corporation’s chemicals business were established in 1920. With combined research efforts, new developments occurred rapidly. New products included ethylene glycol (today’s Presione anti-freeze and coolant), batteries for portable radios, quiet flickerless carbons used for the first sound movies, and ferroalloys to improve the steels used to build skyscrapers, bridges, and automobiles. The company’s technology included the production of corrosion- and heat-resistant alloys. Six years later it acquired vanadium interests on the Colorado Plateau, which eventually supplied the uranium for atomic energy. Graphite skills were added to the Corporation’s carbon activities in 1928 with the Acheson Graphite Corporation. The Chicago World’s Fair in 1933 enabled Union Carbide to exhibit more than half of the known chemical elements to the public. Today, Union Carbide works with more than 90 of the 107 chemical elements named by scientists.

With the advent of World War II Union Carbide focused its attention on developing raw material resources and utilization of by-products. Carbide resumed its butadiene studies, begun years before, to succeed in developing a synthetic rubber, and soon acquired the Bakelike Corporation, increasing its technology in the field of plastics. Carbide was also responsible for research on vanadium that eventually involved the Corporation in the government’s atomic energy program. Scientists demonstrated that gaseous diffusion could be used to separate quantities of uranium-235. Union Carbide and the Manhattan Engineer District entered into a contract on 18 January 1943 to operate the Oak Ridge Gaseous Diffusion Plant. After intensive research, Linde perfected a refining process for treating uranium concentrates. A plant was built and operated by the Electro Metallurgical Company, presently the Metals Division, to provide extensive emergency metallurgical research, and to manufacture uranium. Graphite products and special carbons were developed and manufactured by National Carbon, presently Carbon products. Uranium-bearing materials were located and provided by the United States Vanadium, now part of the Metals Division, also constructing three plants for treating uranium ores with newly developed processes. Finally, Union Carbide and Carbon Research Laboratories contributed to the development of the atomic weapon itself.

Following World War II, Union Carbide expanded. Polyethylene, a plastic used in squeeze bottles, as well as in films and sheeting, became its largest dollar-volume product. Other materials such as gases and carbon products also continued to succeed.

Restructuring of the Union Carbide Company began during the 1950’s. Interest in new fields of technology emerged. The Metals Division was established to handle worldwide ore procurement, and a food casings business, formally the Visking Company, was also established. By 1957 Union Carbide and Carbon Corporation had established some 400 plants in the United States and Canada, in addition to overseas affiliates. The public was becoming increasingly aware of its activities, so the company decided to change its name to the Union Carbide Corporation in 1957. Consumer products such as Eveready batteries and Presione anti-freeze continued to increase in sales. To accommodate this, a separate division strictly for consumer products was established in 1959. Then in the early 1960’s the Glad line of plastic wraps, bags, and straws was introduced and became a leading brand in its field.

International operations of Union Carbide was restructured in 1966 to accommodate new subsidiaries, including Union Carbide Pan America, Inc., Union Carbide Europe, Inc., Union Carbide Eastern, Inc., Union Carbide Africa and Middle East, Inc., and Union Carbide Canada Limited (a 75-% owned subsidiary). A new division was named in 1969—Films-Packaging Division (previously the Visking casings business), consolidating activities in food casings and related products. During the late 1960’s and early 1970’s, Union Carbide decided to sell and dissolve some of its businesses in order to concentrate on further expansion of certain industries. Among the businesses sold were Neisler Laboratories (acquired in 1965), the Stellite, or Materials Systems Division, Ocean Systems, Inc., a subsidiary underwater work, The Englander Company, Inc. (a bedding company acquired in 1964), most of its oil and gas interests, a pollution-monitoring devices business, a plastic container line, a fibers business, a jewelry line, and an insect repel-lant business. Other organizational changes came about during this period as well. The New Business Development Department, formed in 1970, merged with the Corporate Technology Department in 1971. Two years later, the Consumer Products Division was elminiated to form a Battery Products Division. Preston and Glad products acquired the Home and Automotive Products Division. The Agricultural Products Division, developed in 1976, began producing Sevin insecticide, Temik pesticide, and similar materials.

In 1972 a comprehensive long-term program was established by Union Carbide with the following objectives: “Strengthening the assignment of individual responsibilities and accountabilities, strengthening business management methods, allocating resources selectively in strategic planning units, and practicing good corporate citizenship at home and abroad.” With the advent of new strategies came new materials and processes, including molecular sieve adsorbents and catalysts, specialized electronic materials, foamed plastics, biomedical systems, pollution abatement systems, energy (converting coal to gases and liquids for fuel), miniature batteries, food (chemicals to increase food yield, raising salmon, trout, and other fish species, shrimp fishing off the coast of India), Thornel carbon-graphite fibers (used in aerospace, gold club shafts, tennis rackets, and fishing rods).

In addition to these developments, Union Carbide had established additional pesticide and fertilizer producing plants in particular, Bhopal, India. During the mid-1960’s India was experiencing a chronic food shortage. The central government’s “Green Revolution” included increasing use of pesticides. When Union Carbide approached New Delhi authorities with an offer to build a plant in Bhopal, they were gladly accepted. In 1975 the Indian government granted Union Carbide a license to manufacture pesticides, and the plant was built, Union Carbide owning 51 percent and India’s private companies owning 49 percent. The plant was built on the outskirts of the city, not densely populated at that time. But with construction came more residents: more than 900,000 people eventually lived in this capital of Madhya Pradesh. Union Carbide increased its ties with the local government and helped the city to build a park. The company also hired local residents for management positions.

By the late 1970’s, Union Carbide had established itself as having one of the better safety records in the chemical industry throughout all its subsidaries, including India. But a massive disaster at the Bhopal plant in December 1984 led to the deaths of some 2500 people, with a huge additional number possibly permanently disabled. It has been called “the worst industrial accident in history” (Newsweek ).

After the incident, Bhopal police arrested five senior Indian executives of Union Carbide. In a written statement, Arjun Singh, chief minister of Madhya Pradesh state, charged Warren Anderson, chairman of Union Carbide’s board, with “corporate and criminal liability,” and accused the Union Carbide management of “cruel and wanton negligence.” Many class action suits were filed against Union Carbide on behalf of all the victims by two Florida attorneys, Michael Tobin and Jack Thompson, in association with the San Francisco lawyer Melvin Belli. According to the Cook County Municipal Law Library, these suits were later filed in India. Union officials claim that at least five tons of methyl isocyanate (MIC) seeped out in the 30 minutes before the leaking tank was sealed. The effects of the chemical on humans resemble those of nerve gas (Newsweek ).

In addition to the human toll, the tragedy halted business at the $9 billion company, and Union Carbide shut down production and distribution of methyl isocyanate at their plant in Institute, West Virginia. Stock prices plunged 12 points. Union Carbide may never be able to recover from the 1984 Bhopal disaster. As Chairman Warren Anderson concedes, “We have a stigma and we can’t avoid it.”

Principal Subsidiaries

Amerchol Corporation; Amko Service Company; Bayox, Inc.; Beaucar Minerals, Inc.; BEK III Inc.; Be-Kan, Inc.; Bentley Sales Co. Inc.; Blue Creek Coal Company, Inc.; Catalyst Technology, Inc.; Cellulosic Products, Inc.; Chemicals Marine Fleet, Inc.; Dexter Realty Corporation; Gas Technics Gases and Equipment Centers of Eastern Pennsylvania, Inc.; Gas Technics Gases and Equipment Centers of New Jersey, Inc.; Gas Technics Gases and Equipment Centers of Ohio, Inc.; Global Industrial Corporation; Hampton Roads Welders Supply Company, Inc.; Harvey Company; Innovative Membrane Systems, Inc.; International Cryogenic Equipment Corporation; Iweco, Inc.; Karba Minerals, Inc.; KSC Liquidation, Inc.; KTI Chemicals, Inc.; Linde Homecare Medical Systems, Inc.; Linox Welding Supply Co.; London Chemical Company, Inc.; Media Buyers Inc.; Merritt-Holland Company; Mon-Arc Welding Suppy, Inc.; Nova Tran Corporation; Paulsboro Packaging Inc.; Phoenix Research Corporation; Polysak, Inc.; Prentiss Glycol Company; Presto Hartford, Inc.; Presto Welding Supplies, Inc.; Seadrift Pipeline Corporation; Soilsery, Inc.; South Charleston Sewage Treatment Company; UCAR Capital Corporation; UCAR Energy Services Corporation; UCAR Interam, Inc.; UCAR Louisiana Pipeline Company; UCAR Pipeline Incorporated; UCORE Ltd.; Umetco Minerals Exploration; Umetco Minerals Sales Corporation; Unigas, Inc.; Union Carbide Africa and Middle East, Inc.; Union Carbide Canada Ltd. (74.5%); Union Carbide Caribe, Inc.; Union Carbide Communications Company, Inc.; Union Carbide Engineering and Hydrocarbons Service Company, Inc.; Union Carbide Engineering and Technology Services; Union Carbide Ethylene Oxide/Glycol Company; Union Carbide Europe, Inc.; Union Carbide Films-Packaging, Inc.; Union Carbide Grafito, Inc.; Union Carbide Imaging Systems, Inc.; Union Carbide Industrial Services Company; Union Carbide Inter-America, Inc.; Union Carbide International Capital Corporation; Union Carbide International Sales Corporation; Union Carbide Polyolefms Development Company, Inc.; UNISON Transformer Services, Inc.; Vametco Minerals Corporation; V.B. Anderson Co. (85.33%); Welders Service Center of Nebraska, Inc.; Wolfe Welding Supply Company, Inc. The company also lists subsidiaries in the following countries: Australia, Austria, Belgium, Bermuda, Brazil, Canada, Colombia, Costa Rica, Ecuador, Egypt, France, Ghana, Greece, Guatemala, Hong Kong, India, Indonesia, Iran, Italy, Japan, Kenya, Malaysia, Malawi, Mexico, Netherlands, Netherlands Antilles, New Zealand, Nigeria, Pakistan, Panama, Philippines, Puerto Rico, Singapore, South Africa, South Korea, Spain, Sri Lanka, Sweden, Switzerland, Taiwan, Thailand, Turkey, United Kingdom, U.S. Virgin Islands, Venezuela, West Germany, and Zimbabwe.

Further Reading

Behold the Poison Cloud: Union Carbide’s Bhopal Massacre by Larry Everest, Chicago, Banner Press, 1986.