{"url_path":"/sec/cik-0000100790/10-k/2026/item-1","section_key":"item-1","section_title":"Item 1 BUSINESS","topic":"sec","document":{"doc_type":"10-K","doc_date":"2026-02-03","source_url":"https://www.sec.gov/Archives/edgar/data/100790/0000029915-26-000004-index.html","accession_number":"0000029915-26-000004","cik":"0000100790","ticker":null,"issuer_name":"UNION CARBIDE CORP /NEW/","edgar_url":"https://www.sec.gov/Archives/edgar/data/100790/0000029915-26-000004-index.html","primary_entity_key":"0000100790","primary_entity_name":"UNION CARBIDE CORP /NEW/"},"word_count":1285,"has_tables":true,"body_markdown":"ITEM 1. BUSINESS\n\nTHE CORPORATION\n\nUnion Carbide Corporation is a chemicals and polymers company that 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, and Dow Inc. operates all of its businesses through TDCC. Except as otherwise indicated by the context, the terms \"Corporation\" or \"UCC\" as used herein mean Union Carbide Corporation and its consolidated subsidiaries and references to \"Dow\" refer to Dow Inc., together with TDCC and its consolidated subsidiaries.\n\nTDCC conducts its worldwide operations through global businesses and the Corporation's business activities comprise components of TDCC's global businesses rather than stand-alone operations. Further, the Corporation sells substantially all of its products to TDCC in order to simplify the customer interface process at prices determined in accordance with the terms of an agreement between UCC and TDCC. The Corporation's Board of Directors, acting pursuant to the authority delegated to it by TDCC, functions as the Corporation's chief operating decision maker (\"CODM\") to assess UCC's results and allocate resources for its operations. The Corporation's results are reported as a single operating segment as the consolidated statements of income are presented to the CODM without further disaggregation.\n\nAvailable Information\n\nThe Corporation's Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8‑K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, are available free of charge through the Financial Reports-SEC Filings section of the Corporation's website at www.unioncarbide.com, as soon as reasonably practicable after the reports are electronically filed or furnished with the U.S. Securities and Exchange Commission (\"SEC\"). The SEC maintains a website that contains these reports as well as proxy statements and other information regarding issuers that file electronically. The SEC's website is www.sec.gov. The Corporation's website and its content are not deemed incorporated by reference into this report.\n\nPRODUCTS\n\nThe following is a description of the Corporation's principal products:\n\nEthylene Oxide/Ethylene Glycol (“EO/EG”) - ethylene oxide, a chemical intermediate primarily used in the manufacture of monoethylene glycol (“MEG”), polyethylene glycol, glycol ethers, ethanolamines, surfactants and other performance chemicals and polymers; di- and tri-ethylene glycol, used in a variety of applications, including boat construction, shoe manufacturing, natural gas-drying and other moisture-removing applications, and plasticizers for safety glasses; and tetraethylene glycol, used predominantly in the production of plasticizers for automotive windows. MEG is used extensively in the production of polyester fiber, resin and film, automotive antifreeze and engine coolants, and aircraft anti-icing and deicing fluids.\n\nHydrocarbons - ethylene and propylene; internal feedstocks that are primarily consumed by downstream product lines to optimize integration benefits and drive low costs.\n\nIndustrial Chemicals and Polymers - broad range of products for specialty applications, including animal food supplements, personal care, industrial and household cleaning, coatings for beverage and food cans, industrial coatings and many other industrial uses. Product lines include acrolein and derivatives, ethyleneamines, CARBOWAX™ and SENTRY™ Polyethylene Glycols and Methoxypolyethylene Glycols, TERGITOL™ and TRITON™ Surfactants, UCAR™ Deicing Fluids, UCARTHERM™ Heat Transfer Fluids and UCON™ Fluids.\n\nPolyethylene - includes FLEXOMER™ Polyethylene, very low-density polyethylene resins used as impact modifiers in other polymers and to produce flexible hose and tubing, frozen-food bags and stretch wrap; TUFLIN™ Linear Low Density and UNIVAL™ High Density Polyethylene resins used in high-volume applications such as housewares; milk, water, bleach and detergent bottles; trash bags; packaging; and water and gas pipe.\n\n5\n\n[Table of Contents](#i2aef629ae28d4ab08017402fb32766d6_7)\n\nSolvents and Intermediates - includes oxo aldehydes, acids and alcohols used as chemical intermediates and industrial solvents and in herbicides, plasticizers, paint dryers, jet-turbine lubricants, lube oil additives and food and feed preservatives; and esters, which serve as solvents in industrial coatings and printing inks and in the manufacturing processes for pharmaceuticals and polymers.\n\nTechnology Licensing and Catalysts - includes catalysts for supply and licensing of the METEOR™ Process for EO/EG and the LP OXO℠ process for oxo alcohols; and licensing of the METEOR™ Process for EO/EG and the LP OXO℠ process for oxo alcohols.\n\nVinyl Acetate Monomer - a building block for the manufacture of a variety of polymers used in water-based emulsion paints, adhesives, paper coatings, textiles, safety glass and acrylic fibers.\n\nWire and Cable Applications - polyolefin-based compounds for high-performance insulation, semiconductives and jacketing systems for power distribution, telecommunications, and flame-retardant wire and cable insulation. Key product lines include: REDI-LINK™ Polyethylene-Based Wire and Cable Compounds, SI-LINK™ Polyethylene-Based Low Voltage Insulation Compounds, UNIGARD™ HP High-Performance Flame-Retardant Compounds, UNIGARD™ RE Reduced Emissions Flame‑Retardant Compounds, and UNIPURGE™ Purging Compounds.\n\nRAW MATERIALS\n\nUCC operates in an integrated manufacturing environment. Basic raw materials are processed through many stages to produce a number of products that are sold as finished goods at various points in those processes. Hydrocarbon-based raw materials are the major raw material streams that feed production of the Corporation's finished goods. UCC purchases hydrocarbon-based raw materials including ethane, propane and butane as feedstocks, which are used in the production of saleable products. The Corporation also purchases and sells certain monomers, primarily ethylene and propylene, to balance internal production and internal consumption.\n\nUCC's primary source of these raw materials are natural gas liquids (\"NGLs\"), which are derived from natural gas and crude oil production. Given recent advancements in shale gas, shale oil and conventional drilling techniques, the Corporation expects these raw materials to be in abundant supply. UCC's suppliers of these raw materials include regional, international and national oil and gas companies.\n\nCOMPETITION\n\nThe chemical industry has been historically competitive and this competitive environment is expected to continue. Large, multinational chemical firms, as well as the chemical divisions of the major national and international oil companies, provide substantial competition both in the United States and abroad.\n\nPATENTS, LICENSES AND TRADEMARKS\n\nThe Corporation continually applies for and obtains U.S. and foreign patents that relate to a wide variety of products and processes, has a substantial number of pending patent applications throughout the world and is licensed under a number of patents. At December 31, 2025, the Corporation owned 56 active U.S. patents and 347 active foreign patents related to a wide variety of products and processes. These patents expire as follows:\n\nRemaining Life of Patents Owned at Dec 31, 2025\nUnited StatesRest of World\n\nWithin 5 years26 157 \n\n6 to 10 years21 141 \n\n11 to 15 years6 44 \n\n16 to 20 years3 5 \n\nTotal56 347 \n\nThe Corporation also has a large number of trademarks. Although the Corporation considers that its patents, licenses and trademarks in the aggregate constitute a valuable asset, it does not regard its business as being materially dependent on any single or group of related patents, licenses or trademarks.\n\nPROTECTION OF THE ENVIRONMENT\n\nMatters pertaining to the environment are discussed in Management's Discussion and Analysis of Financial Condition and Results of Operations, and Notes 1 and 12 to the Consolidated Financial Statements.\n\n6\n\n[Table of Contents](#i2aef629ae28d4ab08017402fb32766d6_7)\n\nOTHER ACTIVITIES\n\nDividends and Distributions\n\nOn a quarterly basis, the Corporation's Board of Directors (\"Board\") reviews and determines if there will be a dividend distribution to its parent company and sole shareholder, TDCC. The Board takes into consideration the level of earnings and cash flows, among other factors, in determining the amount of the dividend distribution. The Corporation declared and paid cash dividends to TDCC of $28 million in 2025 and $228 million in 2024.\n\nAdditionally, as part of TDCC's continuing efforts to optimize its intercompany financing structure, the Corporation received a distribution of $735 million in 2025, from Dow International Holdings Company, a related company in which the Corporation holds a minority ownership interest, which was subsequently distributed to TDCC. See Note 17 to the Consolidated Financial Statements for additional information about the Corporation's dividends and distributions."}