Koch Industries, Inc. is an American multinational company based in Wichita, Kansas. Its subsidiaries are involved in the production, refining, and distribution of oil, chemicals, energy, fiber, intermediates and polymers, minerals, fertilizers, pulp and paper, chemical technology equipment, livestock, finance, commodity trading and investment. Koch has Invista, Georgia-Pacific, Molex, Flint Hills Resources, Koch Pipeline, Koch Fertilizer, Koch Minerals, Matador Cattle Company, and Guardian Industries. The company employs 120,000 people in 60 countries, with about half of its business in the United States. This company is the largest landowner in the Athabasca oil sands.
The company is the second largest private company in the United States after Cargill, with annual revenue of $ 115 billion. In 2007, the company was ranked as the largest private company. If Koch Industries is a public company by 2013, it will be ranked 17th in the Fortune 500.
The company was founded by its namesake, Fred C. Koch, in 1940 after he developed an innovative crude oil refining process. Fred C. Koch died in 1967 and his majority interests in the company were divided among his four sons. In June 1983, after a bitter legal battle and meeting room, Frederick R. Koch and William "Bill" Koch's bets were bought for $ 1.1 billion and Charles Koch and David Koch became majority owners in the company. Charles and David Koch each own 42% of the company and believe in the benefits of Elaine Tettemer Marshall, the daughter-in-law of J. Howard Marshall and Anna Nicole Smith, and her sons Preston Marshall and E. Pierce Marshall Jr., owning 16% company.
The company has used its freedom from public market pressure to make long-term bets and Charles Koch has stated that the company will go public "on top of my dead body."
Video Koch Industries
History
The predecessor
In 1925, Fred C. Koch joined MIT's classmate Lewis E. Winkler at an engineering firm in Wichita, Kansas, which was renamed Winkler-Koch Engineering Company. In 1927, they developed a more efficient process of heat dissipation to convert crude oil into gasoline. This process threatens the competitive advantage of established oil companies, which are prosecuted for patent infringement. While being forced out of business in the United States, they switched to other markets, including the Soviet Union, where Winkler-Koch built 15 cracked units between 1929 and 1932. During this time, Koch suddenly hated Communism and the regime of Joseph Stalin. In his 1960 book, A Businessman Seen Communism, Koch wrote that he found the Soviet Union as "a land of hunger, suffering, and terror." According to Charles Koch, "Almost every engineer working with [there] has been cleaned up."
In 1940, Koch joined a new partner to create the Timber Oil and Purification Company. In 1946, the company acquired the Rock Island refinery and crude oil collection system near Duncan, Oklahoma. Wood River was later renamed Rock Island Oil & amp; Purification Company. Charles Koch joined Rock Island in 1961, having started his career at management consulting firm Arthur D. Little. He became president in 1966 and chairman at the age of 32, following the death of his father the following year.
Koch Industries
Wood River Oil and Refining Company was renamed Koch Industries in 1968 in honor of Fred Koch, a year after his death. At the time, the company was primarily an engineering firm with interests in Pine Bend Refinery in Minnesota, a crude oil collection system in Oklahoma, and several cattle ranches. In 1968, Charles approached Union Oil of California about buying their interest in the Great Northern Oil Company and Pine Bend Refinery but the discussion quickly stalled after the Union asked for a large premium. In 1969, Union Oil began trying to market their interest in the Great Northern by telling potential buyers that interest in controlling Koch could be thwarted by licking it with another owner, J. Howard Marshall II. When Marshall discovers this, he throws a lot with Koch, they jointly acquire a majority stake in the company and end up buying Union flowers. The ownership of the Pine Bend refinery caused several new businesses and capabilities, including chemicals, fibers, polymers, asphalt and other commodities such as petroleum and sulfuric cokes. This is followed by global commodity trading, gas liquids, real estate, pulp and paper processing, risk management and finance.
In 1970, Charles joined the family company by his brother David Koch. After starting as a technical service manager, David became president of Koch Engineering in 1979.
In 2005, the company acquired Georgia-Pacific.
In 2010, the company included the first group of nearly 2,000 entrepreneurs applying for and federal reimbursement from the US Department of Health and Human Services, under the new Retiree Reinsurance Program established by the Patient Protection and Affordable Care Act, to provide health insurance for retirees who are too young to qualify for Medicare.
In 2015, the company joins the "Ban the Box" movement by removing questions about previous criminal convictions from its job application, making it easier for former offenders to find work.
In November 2015, the company "signed a Support Statement with Employer Support from Garda and Reserves (ESGR) which promised Koch will provide supervisors with tools to employ and support employees serving in the US National Guard."
In 2008, the company found that French affiliate Koch-Glitsch had violated bribery laws allegedly securing contracts in Algeria, Egypt, India, Morocco, Nigeria and Saudi Arabia after an investigation by Ethics Compliance Officer Egorova-Farines. After Koch Industries's investigative team looked into its findings, the four employees involved stopped. According to journalist Jennifer Rubin, Koch Industries general adviser stated that Egorova-Farines failed to immediately share the findings, instead choosing to provide information to a manager at Koch-Glitsch who was later fired for bribes. According to Koch Industries general advisor, "Egorova-Farines is not fired but instead has performance problems, leaving the company to leave on leave and never to return." Egorova-Farines sued Koch-Glitsch for a false stop in France, disappeared, and "ordered to pay the fee for bringing a reckless case."
In 2013, the company acquired Molex, a provider of electronic components, for $ 7.2 billion.
In September 2014, along with private equity arm Goldman Sachs, the company acquired Flint Group, a print-ink manufacturer, for $ 3 billion.
In June 2014, the United Negro College Fund announced a $ 25 million grant from Koch Industries and the Charles Koch Foundation for award-winning scholarship and general support from historically black colleges and universities.
In December 2014, the company acquired Oplink Communications, a maker of optical networking devices, for $ 445 million.
Maps Koch Industries
Subsidiaries
Arteva Europe S.a.r.l.
Arteva Europe is an "internal bank" headquartered in Luxembourg and manages the cash flow of Europe from Koch Industries.
Flint Hills Resources LP
Flint Hills Resources LP, originally named Koch Petroleum Group, is a large refining and chemical company based in Wichita, Kansas. It sells products such as gasoline, diesel, jet fuel, ethanol, polymers, intermediate chemicals, base oil and bitumen. It operates oil refineries in six states. Flint Hills has chemical plants in Illinois, Texas, and Michigan. The company is also a major producer of asphalt used for paving and roof applications. It operates 13 asphalt terminals located in six countries including Alaska (2 terminals), Wisconsin (2), Iowa (3), Minnesota (4), Nebraska (1), and North Dakota (1). The company manages the purchase of domestic crude from the offices of Texas and Colorado, owns four ethanol plants in Iowa, operates three refineries in Alaska, Texas and Minnesota, and has a refinery terminal in Alaska. The Minnesota refinery can process 392,000 barrels (62,300 m 3 ) of crude oil per day, mostly from Alberta, Canada, and handles one quarter of all Canadian oil sands coming into the US. fuel terminals in Wisconsin (4 locations), Texas (6), and respectively in Iowa and Minnesota.
On July 16, 2014, Flint Hills Resources acquired PetroLogistics, Houston's proprietary chemical and polymeric propylene manufacturer.
Georgia-Pacific
Georgia-Pacific is a paper and pulp company that produces a wide range of household products under Brawny, Angel Soft, Mardi Gras, Quilted Northern, Dixie, Sparkle, and Vanity Fair. The Atlanta-based company operates in 27 states.
Guardian Industries
Guardian Industries is a manufacturer of glass, automotive, and building products based in Auburn Hills, Michigan. The company produces float glass, fabrication glass products, fiberglass insulation and building materials for commercial, residential and automotive applications. The company employs over 18,000 people and has activities in North and South America, Europe, Asia, Africa and the Middle East.
INVISTA
Acquired from DuPont, INVISTA is a polymer and fiber company that makes carpet "Stainmaster", and "Lycra" fiber, among other products.
Koch Aging & amp; Koch_Ag_.26_Energy_Solutions Energy Solutions
Koch Ag & amp; Energy Solutions, LLC and its subsidiaries, including Koch Fertilizer, LLC, Koch Agronomic Services, LLC, Koch Energy Services, LLC and Koch Methanol, LLC, globally provide products including fertilizers and other plant nutrients for agricultural grasses and ornamental plant markets, as well as a product and other high efficiency technologies for the energy and chemical markets.
Koch Fertilizer, LLC, is one of the largest nitrogen fertilizer makers in the world. Koch Fertilizer owns or has interests in fertilizer factories in the United States, Canada, Trinidad and Tobago, Venezuela, and Italy, among others. The Koch Fertilizer was formed in 1988 when the Koch Company purchased the Gulf Central Pipeline and an ammonia terminal connected to the pipe. The following year, the Koch Nitrogen Company was formed to market ammonia. The next few years saw the purchase of ammonia facilities in Louisiana, Canada, and elsewhere, and ammonia sales agreements with companies in Australia, the UK, and other countries. In 2010 saw the founding of Koch Methanol, LLC, and Koch Agronomic Services, LLC. In October 2010, a plant in which Koch owns 35% of the shares was nationalized by the Venezuelan government. In 2011, the company acquired British fertilizer company J & amp; H Bunn Limited. Koch Fertilizer has changed its name to Koch Ag and Energy Solutions (KAES)
Koch Chemical Technology Group
Koch Chemical Technology Group, Ltd. and its subsidiaries design, manufacture, install and process pollution control services and equipment, water purification and desalination equipment, and provide engineering services for various industrial and municipal applications worldwide.
Koch-Glitsch
Koch-Glitsch is an entity of Koch Industries. Koch-Glitsch engineer mass transfer and mist elimination equipment for refineries and chemical plants around the world. As a world leader in process systems, Koch-Glitsch has two joint ventures under its umbrella: The Eta Process Plant and Koch Modular Process Systems.
Eta Process Plant
Eta is a leading supplier of deaeration plants worldwide, with more than 400 factories worldwide. The majority of deaerated seawater plants supplied by Eta use vacuum stripping.
Modular System Koch
Koch Modular Process Systems specializes in modular mass transfer systems. Typical applications for this system include chemical purification, recovery solvents, and liquid-liquid extraction. Koch Modular Process Systems also runs a sophisticated pilot plant.
Koch Minerals
Koch Minerals, LLC through its subsidiary, is one of the world's largest dry bulk commodity managers, and is also involved in oil and gas exploration and production, oilfield product production, investment in steel and other markets.
Koch Pipeline Company LP
Koch Pipeline Company LP, which owns and operates 4,000 miles (6,400 km) of pipes used to transport oil, natural gas liquids and chemicals. The pipeline is located in Wisconsin, Minnesota, Texas, Missouri, Iowa, Oklahoma, Louisiana, and Alberta, Canada. The company operates offices in Wichita, Kansas, St. Paul, Minnesota, and Corpus Christi, Texas.
In 1946, Wood River Oil Co. (a pioneer company for Koch Industries) purchased Rock Island Oil and Refining Co. As part of the transaction, he acquired a crude oil pipeline in Oklahoma. As a result of construction and investment, Wood River acquired other pipelines in the US and Canada. "In subsequent years," according to the Koch Pipeline website, "the company buys, sells and builds pipelines that transport crude oil and refined products, as well as natural gas, natural gas liquids and ammonia anhydrates (for fertilizers)." Koch Pipeline and its affiliates are currently maintaining a 4,000-mile long pipeline.
In October 1994, a pipe broke out and removed more than 90,000 gallons of crude oil into Gum Hollow Creek, in Refugio County, Texas. Heavy rains carry oil to the Nueces River and into Nueces and Corpus Christi Bays. Terrestrial discharge and aquatic vegetation, birds, sediment, soil, and other biota. The Permission Decree is held for some time, due to a DOJ criminal case with Koch Pipeline regarding unreported and unreported repayment. The criminal case was resolved in March 2000 and the assessment was completed.
In 1996, an 8-inch steel LPG pipe operated by Koch Pipeline Company broke out near Lively, Texas, a community about 50 miles southeast of Dallas, and began leaking butane gas. The vapor cloud was ignited when two residents drove their pickup truck across a tributary near the pipeline (which was then unknown to locals) while on their way to a neighbor's house to call 9-1-1 and report on the smell of gas. Both were killed in the blast, and about 25 families were later evacuated from the neighborhood unscathed, including parents who had witnessed the death of his daughter. An investigation conducted by the NTSB found that the failed portion of the pipe was not proven to have excessive corrosion in the 1995 inspection. The regulations at the time did not provide the criteria for "adequate cathodic protection." Koch also stated that bacteria-induced bacteria act faster than those previously noted in the industry. The explosion was the only event in the company's history. In 1999, a jury from Texas found that negligence had caused the breakup of the Koch pipe and gave the family a $ 296 million victim.
Koch Supply & amp; Trade
Koch Supply & amp; Trading companies around the world trade in crude oil, petroleum products, gas products, natural gas, liquefied natural gas, electricity, renewable energy, emissions, and metals.
Company Matador Cattle
The Matador Cattle Company division operates three 425,000 acre (1,720 km 2 ) farms located in Beaverhead, Montana, Matador, Texas and Flint Hills in eastern Kansas. There are more than 15,000 cows raised on the farm.
The Matador Land and Cattle Company was founded in 1882 by Scottish investors, whose acquisitions include 2.5 million acres in four Texas regions. In 1951, the company was sold to Lazard FrÃÆ'¨res & amp; Co., who in turn sold some Texas land to Fred C. Koch. In 1952, Koch formed the Matador Cattle Company, and then one of his companies bought part of Matador Ranch, which was brought along with other Koch ranches in Montana and Kansas.
In 2010, Matador Ranch in Texas received the Lone Star Land Steward award, an award sponsored by Chevron Corporation, Toyota, and the Texas and Southwest Cow Breeders Association for exceptional natural resource management.
Molex
In addition to Molex pin-and-socket connectors, Molex also manufactures special connectors and sensors for equipment used in data transmission, telecommunications, industrial applications, solar power, automotive electronics, commercial vehicles, aerospace and defense, pharmaceuticals, and solid- state..
Environmental and security records
Bloomberg reported that from 1999 to 2003, Koch Industries was judged "more than $ 400 million in fines, penalties and judgments." Daniel Indiviglio, in the reaction section that appears in The Atlantic, argues that Bloomberg's article is biased and misleading, insisting that the Bloomberg team "only found eight examples of giant multinational gross violations over the 63-year span."
In 2000, for 312 reported oil spills associated with Koch and its subsidiaries that occurred in six states, Koch paid what at the time was the largest civil penalty ever imposed on a company under federal environmental legislation for the release illegal crude oil and petroleum products. This is the first time the government has collected multiple spills over several years under one joint lawsuit against a company. Koch denied EPA figures, saying the EPA did not file claims in more than half of 312 alleged cases, and further, that "Many of these suspected spills are not even listed in EPA's own oil spill database." In the settlement with the US Department of Justice and the state of Texas that included "leaks that occurred as a result of third-party actions, such as digging," the company agreed to pay "$ 30 million in civil penalties, increased leak prevention programs and spent $ 5 million on environmental projects. "
In 1995 when the lawsuit was filed, Koch Ron Howell's spokesman stated "We have invested more than $ 150 million in leak protection and line rehabilitation over the past five years... we have been able to reduce leakage over that time period by almost 70 percent even as we increasing our pipeline mileage by more than 25 percent. "Between 1990 and 2000, Koch reduced its crude oil pipeline leakage by more than 90 percent.
In March 1999, Koch Petroleum Group admitted that it had freed hundreds of thousands of gallons of aviation fuel to the wetlands of its refinery in Rosemount, Minnesota, and illegally dumped a million gallons of high ammonia wastewater to the ground and into the Mississippi River. Koch Petroleum paid a fine of $ 6 million and $ 2 million in remediation fees, and was ordered to serve three years of probation.
In September 2000, the federal grand jury returned the 97-counted indictment against Koch Industries and four individual employees for environmental crimes related to the alleged violation of the Clean Air Act and the measurement and control of benzene emissions from the Western Factory in Corpus Christi, Texas. An accompanying indictment followed in January 2001. In April 2001, Koch pleaded guilty to one count, related to a self-reported wastewater report to the government in 1995, according to the company. Koch Industries was fined $ 20 million, of which $ 10 million was a criminal fine and $ 10 million to be used for special projects to improve the environment in Corpus Christi.
In December 2000, the Department of Justice and the EPA signed a Decree of Approval with Koch Petroleum Group to spend about $ 80 million to install the latest pollution control equipment at two refineries in Corpus Christi, Tex. And another one near St. Paul, Minn., Reduce emissions from piles, leaking valves, wastewater vents and flares. Koch will also pay a $ 4.5 million fine to settle violations of the Clean Air Act and other environmental claims at its Minnesota refinery. The State of Minnesota has joined the settlement with the United States.
In June 2003, the US Commerce Department fined Flint Hills Resources with a $ 200,000 civil fine. A well-settled fine that the company exports crude oil from the US to Canada without proper US government permission. The Trade and Industry Bureau of the Commerce Department said from July 1997 to March 1999, Koch Petroleum (later called Flint Hills Resources) committed 40 violations of the Export Administration Regulations.
In 2005, Flint Hills Resources's Koch refinery was recognized by the Clean Air Awards program of the Environmental Protection Agency to reduce air emissions by up to 50 percent, even when expanding operations. EPA has worked with Flint Hills Resources to develop "strategies to limit so-called 'disturbance' emissions, in what the agency and company sources say could lead to guidelines to minimize such emissions from petroleum refineries and other industrial facilities." The EPA described the process as "a model for other companies."
In 2006, Flint Hills Resources was fined nearly $ 16,000 by the EPA for 10 separate violations of the Clean Air Act at the Alaska oil refinery facility, and was required to spend another $ 60,000 on safety equipment needed to help prevent future violations.
Koch Industries won the 2015 Conservation Education Award from the Wildlife Habitat Council and "has partnered with the company in conservation efforts for the last 15 years." Between 2009 and 2015, the Koch Company earned 1,085 awards for safety, environmental excellence, community stewardship, innovation and customer service from government agencies, businesses, environmental organizations, trade associations, and charitable organizations around the world.
By 2016, the EPA has established Koch Industries as the number one parent company in the US in pollution prevention initiatives for two consecutive years.
The Georgia-Pacific Paper Mill at Crossett, Arkansas is the subject of the Municipal City environmental film documentary (film), released in 2016. The film alleges that the improper disposal of waste by manufacturers has led to a group of cancer incidents in the area surrounding the plant.
Political activity
According to the Responsive Political Center, many of Koch Industries's contributions have gone towards achieving laws on taxes, energy and nuclear power, defense allocation and financial regulatory reform. Koch Industries has been criticized by Greenpeace environmental activist groups for the role they allege in companies that influence climate change policy in the United States. Koch Industries denied that they had a negative effect on climate change, saying they had "implemented innovative and cost-effective ways to reduce waste and emissions, including greenhouse gases." The corporation further claimed, "Koch companies and Koch foundations have been working to advance economic freedom and market-based policy solutions to the challenges faced by society," states "it is a historical fact that the best economic freedom encourages innovation, environmental protection and improved quality of life. in society. "
Prior to 2008, a subsidiary of Koch Industries in Canada contributed to the Fraser Institute, Canada's conservative public policy think tank, according to the Institute's founders.
The company has opposed the regulation of financial derivatives, limits on greenhouse gases, and sponsored the foundations and causes of the free market.
Koch Industries has come out against the Low Carbon Fuel Standard. According to Koch Industries, "LCFS will cripple refiners who depend on heavy raw materials to provide transportation fuels that keep America moving."
The Koch Industries website contains an opinion section from The Wall Street Journal by Charles Koch, entitled "Why Koch Industries is Speaking Out." The article states: "Because of our activism, we have been vilified by various groups, despite these criticisms, we are determined to continue to contribute and defend the politicians, such as Wisconsin Governor Scott Walker, who takes this challenge seriously. "
The company also funded KochPAC's political action committee.
In the opinion section of 2014 in The Wall Street Journal, Charles Koch writes about his beliefs about a free society that says, "A truly free society is based on a vision of respect for people and what they value." In a totally free society, every business who insult their customers will fail, and deserve to do it.The same must be true for governments that do not respect their citizens.The central belief and the fatal pride of the present administration is that you can not run your own life, but those in power are able to run it for You are the core of great government and collectivism. "
In February 2016, Charles Koch wrote an opinion for The Washington Post, titled "This is one issue where Bernie Sanders is right" in which he argues that "Democrats and Republicans too often favor policies and regulations that choose winners and losers.This helps to perpetuate the cycle of control, dependency, cronyism and poverty in the United States. "
See also
- Energy in the United States
- Koch family
- the Koch family foundation
- List of largest companies by revenue
- Petrochemical industry
- Petroleum in the United States
References
External links
Media related to Koch Industries on Wikimedia Commons
- Official website
- The Koch Industries company is grouped in OpenCorporates
Source of the article : Wikipedia
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