Union Carbide Corporation

Overview

• Union Carbide Corporation (UCC) is a chemicals and polymers company and has been a wholly owned subsidiary of The Dow Chemical Company (TDCC) since 2001.
• TDCC has been a wholly owned subsidiary of Dow Inc. since 2019; Dow Inc. operates all of TDCC’s businesses.
• Unless otherwise indicated, “Corporation” or “UCC” refers to Union Carbide Corporation and its consolidated subsidiaries; “Dow” refers to Dow Inc., together with TDCC and its consolidated subsidiaries.
• TDCC conducts worldwide operations; UCC’s activities are components of TDCC’s global businesses.
• The Corporation sells substantially all of its products to TDCC to simplify the customer interface; prices are determined under an agreement between UCC and TDCC.
• The Corporation’s Board, acting under authority from TDCC, functions as the CODM (chief operating decision maker) to assess results and allocate resources.
• UCC’s results are reported as a single operating segment to the CODM.

Corporate structure and reporting

• The Corporation’s results are presented as a single operating segment in consolidated financial statements.
• Public filings (Forms 10-K, 10-Q, 8-K) are posted on the Corporation’s website and on the SEC website; the Corporation’s website content is not incorporated by reference into the report.

Product portfolio

• Ethylene Oxide / Ethylene Glycol (EO/EG)
  • Ethylene oxide (chemical intermediate)
  • Monoethylene glycol (MEG), polyethylene glycols, glycol ethers, ethanolamines, surfactants, and other performance chemicals and polymers
  • Di- and tri-ethylene glycols used in boat construction, shoe manufacturing, natural gas drying, moisture removal, and plasticizers for safety glasses
  • Tetraethylene glycol used primarily for plasticizers for automotive windows
  • MEG used in polyester fiber, resin and film production, automotive antifreeze and engine coolants, and aircraft anti-icing/deicing fluids
• Hydrocarbons
  • Ethylene and propylene as internal feedstocks for downstream product lines
  • Primary raw material streams derived from natural gas liquids (NGLs) from natural gas and crude oil production
• Industrial Chemicals and Polymers
  • Specialty applications including animal feed supplements, personal care, industrial and household cleaning, and coatings for beverage/food cans and industrial uses
  • Key lines: acrolein and derivatives; ethyleneamines; CARBOWAX and SENTRY polyethylene glycols and methoxypolyethylene glycols; TERGITOL and TRITON surfactants; UCAR deicing fluids; UCARTHERM heat transfer fluids; UCON fluids
• Polyethylene
  • FLEXOMER very low-density polyethylene (impact modifiers, flexible hose/tubing, packaging)
  • TUFLIN linear low-density polyethylene; UNIVAL high-density polyethylene (housewares, bottles, packaging, pipes)
• Solvents and Intermediates
  • Oxo aldehydes, acids, alcohols and esters used in coatings, printing inks, pharmaceuticals and polymers
• Technology Licensing and Catalysts
  • METEOR™ EO/EG process licensing and LP OXO process licensing for oxo alcohols
• Vinyl Acetate Monomer
  • Building block for polymers used in water-based paints, adhesives, paper coatings, textiles, safety glass and acrylic fibers
• Wire and Cable Applications
  • Polyolefin-based compounds for insulation, semiconductives, and jacketing systems
  • Key lines: REDI-LINK, SI-LINK, UNIGARD flame-retardant compounds, UNIGARD reduced-emissions flame-retardant compounds, UNIPURGE purging compounds

Raw materials and supply

• Integrated manufacturing environment with hydrocarbon-based raw materials as the major feedstocks
• Purchases include ethane, propane and butane
• Internal balancing of ethylene and propylene through intercompany trades
• Primary raw material source: natural gas liquids (NGLs) derived from natural gas and crude oil production
• Suppliers include regional, international and national oil and gas companies

Intellectual property

• Patents and licenses are actively pursued; licenses include the METEOR™ EO/EG process and the LP OXO process
• As of December 31, 2025, UCC owned 56 active U.S. patents and 347 active foreign patents
• The company holds a large number of trademarks and is not materially dependent on any single patent, license or trademark

Environmental, health, safety and regulatory

• Environmental matters are addressed in MD&A and related notes
• UCC is subject to environmental laws and regulations worldwide covering pollution, emissions, hazardous substances, waste and remediation
• Compliance and remediation obligations can result in material costs and affect operations and capital expenditures

Dividends and intercompany distributions

• Dividends to TDCC: $28 million in 2025; $228 million in 2024
• In 2025, UCC received a distribution of $735 million from Dow International Holdings Company (a related company in which UCC holds a minority interest); that distribution was subsequently paid to TDCC
• TDCC is the Corporation’s sole shareholder and its major customer; intercompany financing affects liquidity considerations

Customers

• UCC sells substantially all of its products to TDCC; TDCC is the Corporation’s major customer

Availability of information

• Public filings (Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K) and amendments are available on the Corporation’s website and the SEC website