UNION CARBIDE SETS BUDGET FOR EXPANSION

UNION CARBIDE SETS BUDGET FOR EXPANSION

Union Carbide Corp. will increase capital expenditures this year to about $700 million, up from $593 million last year.

This level permits us to double the construction for the booming chemicals and plastics business, according to Robert D. Kennedy, chairman of Union Carbide.Among the new and previously announced expansion and improvement projects noted by Mr. Kennedy are:

* A production increase of one-third more ethanolamines by the end of the year, with no additional investment in capacity. Ethanolamines are used in heavy duty laundry detergents and into the expanding market for personal care products.

* A low-pressure Unipol polyethylene unit in Seadrift, Texas, that will increase domestic capacity by 500 million pounds-per-year to 2.7 billion pounds.

* Strategic joint ventures, including one with BP America, for the supply and marketing of vinyl acetate and acetic acid.