While calcium carbide is sometimes utilized directly as a process material, it's major use and perhaps it's greatest versatility is realized when the rock-like substance is reacted with water to produce acetylene. This highly flammable gas reacts readily with other materials to form various chemical intermediates which are used in the manufacture of a diverse range of chemical derivatives.

Acetylene derivatives are used in a variety of everyday consumer products, including hair sprays, cosmetics, tabletted drugs, sun screens and lotions, antiseptics, and tartar-control toothpastes. In addition, acetylene intermediates provide the basic feedstock for the production of polyurethane fibers, synthetic rubber, perchloroethylene (a widely used dry cleaning solvent), trichloroethylene (a degreasing solvent used in metal working processes), and a new type of refrigerant gas which is designed to replace the environmentally damaging chlorinated fluorocarbons (CFC's) currently in widespread use.

Carbide Industries generates large volumes of acetylene at both it's Louisville and Calvert City plants for distribution via pipeline to several specialty chemical manufacturers.