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UCIL was manufacturing fertilizer and needed the toxic gas methyl isocyanate (MIC). The plant produced this gas themselves, using Indian technology. With this method they had to store large amounts of chemicals, whereas they before had them delivered in smaller doses at a time. Other ways of making this gas were available, where storage was not necessary. The way the US plants and the Indian plant stored MIC differed; the US way was safer and therefore more expensive.
UCIL was a joint venture. The US firm Union Carbide Corporation (UCC) owned 51%; the rest was owned by the Indian government and Indian individuals...
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