Document gDRX3LJwKmw9BzpxMb0YdZ03

<JC 1**1 INTERNAL CORRESPONDENCE - UNION CARBIDE CORPORATION 770 I'ARK AVENUE, NEW YORK, NEW YORK 1001 To(N*m) Mr. J. B.Hollingsworth Divivon Chemicals and Plastics Location New York Floor NumMr 28th Floor March 4, 1977 copy to Mr. W. D Mr. T. D. Mr. W. R, Manning Mr. J. M. Sartorius Dr. D. I. J. Hang Dear John, Sul>icct EPA (VCM) Compliance Projects North Charleston Storage Area South Charleston Plant This letter will confirm our recent discussion concerning support of the subject working budget projects sponsored by your Profit Center 280. I understand that the Solvent Vinyl Resin Unit is the remaining consumer of vinyl chloride at the South Charleston Plant; consequently, your operation is providing direct support to the SVR Unit operation since vinyl chloride is a major raw material. UCC is the only U. S. producer of Solvent Vinyl Resins and is the leader in this business worldwide. SVRs are premium products commanding premium prices. The business achieved excellent performances for many years until 1975 when a worldwide recession and new environmental regu lations upset the PVC industry. A reluctance to raise sales prices and concurrent increases in manufacturing costs resulted in a deterioration in our business performance. However, in 1976, we were able to imple ment substantial price increases and have programmed future increases which are expected to fully restore this business to the previous profit ability levels. Thus, we are planning to continue operation of the SVR Unit in South Charleston and are defining projects to bring the unit into VCM (EPA) compliance. Please feel free to include appropriate words in your request for project funds concerning the need for and support of the SVR profit center for continued operation of the subject VCM receiving and storage are a. Very truly yours, RWA/era 5/1 R. W. Annonio UCC 105352