Koch, Inc.

Koch, Inc.
Company type	Private
Industry	Conglomerate
Founded	1940
Founder	Fred C. Koch
Headquarters	Wichita, Kansas, United States
Area served	Worldwide (60 countries)
Key people	Charles Koch (Chairman and Co-CEO), Dave Robertson (Co-CEO), Jim Hannan (President and COO), Chase Koch (Executive Vice President), Richard Dinkel (Executive Vice President)
Products	Petroleum, chemicals, energy, fibers, intermediates, polymers, minerals, fertilizers, pulp and paper, chemical technology equipment, cloud computing, finance, raw materials trading, investments
Number of employees	122000

Koch, Inc. () is a U.S.-based multinational conglomerate headquartered in Wichita, Kansas, ranking as the second-largest privately held company in the United States, following Cargill. Its diverse operations span manufacturing, refining, and distribution across sectors such as petroleum, chemicals, energy, fibers, intermediates, polymers, minerals, fertilizers, pulp and paper, chemical technology equipment, cloud computing, finance, raw materials trading, and investments. Prominent subsidiaries include Flint Hills Resources, Georgia-Pacific, Guardian Industries, Infor, Invista, KBX, Koch Ag & Energy Solutions, Koch Engineered Solutions, Koch Investments Group, Koch Minerals & Trading, and Molex. The enterprise employs approximately 122,000 individuals worldwide across 60 countries, with nearly half of its activities concentrated within the United States.

The company traces its origins to 1940 when entrepreneur Fred C. Koch established it after inventing a novel crude oil refining method. It has remained under family control since his passing in 1967. Following internal conflicts over dividend distribution in 1983, control was consolidated through a $1.1 billion acquisition by brothers Charles and David Koch of their siblings’ shares. Currently, Charles Koch holds a 42% stake; trusts associated with Elaine Tettemer Marshall and her family own 16%, while the heirs of David Koch possess the remaining 42%. David Koch died in 2019.

Charles Koch has consistently advocated for keeping the company privately held to circumvent pressures from public markets, thereby enabling strategic long-term investments aimed at sustainable growth.

Predecessor companies

In 1925, Fred C. Koch collaborated with his MIT classmate Lewis E. Winkler to establish the Winkler-Koch Engineering Company based in Wichita, Kansas. By 1927, they had developed an enhanced thermal cracking technique for transforming crude oil into gasoline more efficiently. This technology was licensed to numerous independent refineries across the U.S. However, this advancement provoked established oil firms to initiate patent infringement lawsuits that temporarily excluded Winkler-Koch from the domestic market. Consequently, they expanded their operations internationally, including constructing 15 cracking units in the Soviet Union between 1929 and 1932—a period during which Koch developed a pronounced opposition to communism.

Throughout the 1930s, Winkler-Koch executed refinery projects across nine nations. In 1933, in collaboration with William Rhodes Davis, Koch contributed to designing and building Germany’s third-largest oil refinery capable of producing aviation fuel—a critical resource targeted during World War II. Despite this involvement abroad, the Koch family supported the American military efforts against Nazi Germany.

In 1940, Koch partnered with others to form Wood River Oil and Refining Company and acquired the Rock Island refinery along with its crude oil infrastructure near Duncan, Oklahoma in 1946. Wood River was subsequently renamed Rock Island Oil & Refining Company. Charles Koch began his professional journey at Arthur D. Little before joining Rock Island in 1961; he ascended to president in 1966 and became chairman at age 32 following his father’s death in 1967—signifying a pivotal shift in leadership and corporate direction.

Koch Industries

Originally known as Wood River Oil and Refining Company, the firm was renamed Koch Industries in 1968 to honor its founder, Fred Koch, shortly after his passing. At that stage, the company functioned mainly as an engineering enterprise holding a 35% share in Great Northern Oil Company, which operated the Pine Bend Refinery in Minnesota, managed a crude oil collection network in Oklahoma, and owned several cattle ranches.

In 1968, Charles Koch initiated talks with Union Oil of California to purchase its 40% stake in Great Northern Oil Company; however, discussions faltered due to disagreements on valuation. The following year, Koch combined his 35% ownership with J. Howard Marshall’s 15%, creating a 50% controlling interest designed to prevent Union Oil from acquiring control. Subsequently, they purchased Union's share. The Pine Bend Refinery's output included chemicals, fibers, polymers, asphalt, petroleum coke, and sulfur.

David Koch joined the enterprise in 1970 and ascended to the presidency of Koch Engineering by 1979. That same year, Koch Industries expanded by acquiring 780 Chrysler dealerships.

Following a dispute over dividend distributions in 1983, William and Frederick Koch divested their shares for $620 million and $400 million respectively, resulting in Charles and David becoming majority stakeholders. Lawsuits filed by William and Frederick afterward were dismissed.

Strategic acquisitions broadened Koch Industries' footprint: KoSa in 2001—then the largest polyester manufacturer worldwide; Georgia-Pacific in 2005—a prominent timber and paper products firm; Molex in 2013—an electronic components supplier acquired for $7.2 billion; Flint Group in 2014—a $3 billion printing ink producer purchased alongside Goldman Sachs; and Oplink Communications in 2014—an optical networking equipment company acquired for $445 million.

In 2008, Koch-Glitsch, a French subsidiary, was implicated in bribery allegations across several nations; implicated employees were dismissed following internal reviews.

Koch Industries engaged early with the U.S. Department of Health and Human Services’ Early Retiree Reinsurance Program under the Affordable Care Act (2010), aiding health insurance coverage for retirees.

Demonstrating corporate philanthropy, the company contributed $25 million to the United Negro College Fund in 2014 to finance scholarships at historically black colleges and universities.

The firm advanced inclusive hiring by eliminating inquiries about criminal records from job applications in 2015 and committed support to National Guard members employed by the company.

Between 2017 and 2021, Koch Industries earned placement on Forbes’ list of America’s Best Employers by State.

In November 2017, the company launched Koch Disruptive Technologies as its venture capital division under Chase Koch's leadership.

By July 2019, Koch divested its holdings in the Athabasca oil sands region.

In December 2021, Rupert Murdoch acquired a Montana ranch spanning 340,000 acres from Matador Cattle Company—a Koch subsidiary established by Fred Koch in 1951. Additionally, ranch properties located in Kansas and Texas were offered for sale by the company.

In March 2023, Koch Industries announced changes in executive roles: Charles Koch retained his position as chairman while assuming co-CEO duties alongside Dave Robertson; Jim Hannan was appointed President and COO; Chase Koch and Richard Dinkel became executive vice presidents; Ray Geoffroy and Mark Luetters were promoted to senior vice presidents.

Reflecting its expansion beyond traditional sectors, the firm rebranded as Koch, Inc. in 2024.

Infor

In November 2016, Koch committed $2 billion to Infor, a cloud technology company, followed by an additional $1.5 billion investment in January 2019. The full acquisition of Infor was finalized in April 2020 through a transaction valued at $13 billion.

Arteva Europe S.a.r.l.

Based in Luxembourg, Arteva Europe serves as an internal financial institution that oversees the management of Koch Industries' cash flow across its European operations.

Flint Hills Resources LP

Flint Hills Resources LP, previously known as Koch Petroleum Group, is a refining and chemical manufacturing enterprise located in Wichita, Kansas. Its product range includes gasoline, diesel, jet fuel, ethanol, polymers, intermediate chemicals, base oils, and asphalt. The company operates oil refineries in six U.S. states and chemical production facilities in Illinois, Texas, and Michigan. Additionally, it produces asphalt at 13 terminals distributed over six states, including Alaska and Wisconsin.

The company handles domestic crude oil procurement through offices situated in Texas and Colorado and owns five ethanol plants in Iowa along with one in Nebraska. Flint Hills Resources runs refineries located in Alaska, Texas, and Minnesota.

The Pine Bend Refinery in Minnesota processes substantial volumes of crude oil daily, mainly sourced from Alberta, Canada. This refinery processes approximately one-quarter of the Canadian oil sands crude entering the United States. Flint Hills Resources also manages multiple fuel terminal operations across Wisconsin, Texas, Iowa, and Minnesota.

Key acquisitions include the purchase of a Corpus Christi refinery from Sunoco in 1981 for $265 million and another refinery with a capacity of 104,000 barrels per day acquired from Kerr-McGee in 1994. In July 2014, Flint Hills expanded its chemical capabilities by acquiring PetroLogistics, a Houston-based producer specializing in chemical and polymer-grade propylene.

Koch Pipeline Company LP

As a subsidiary of Flint Hills Resources, Koch Pipeline Company LP owns and operates roughly 4,000 miles of pipeline infrastructure transporting petroleum products, natural gas liquids, and chemicals throughout Wisconsin, Minnesota, Texas, Missouri, Iowa, Oklahoma, Louisiana, and Alberta in Canada. The company maintains offices in Wichita (Kansas), St. Paul (Minnesota), Corpus Christi (Texas), and Port Arthur (Texas).

Tracing its origins to Wood River Oil Co., an early Koch Industries affiliate, the company significantly expanded its pipeline system following the acquisition of Rock Island Oil and Refining Co. in 1946. Further investments have extended its network across both the United States and Canada. In 1992, Koch acquired United Gas Pipeline Co., adding over 9,200 miles of pipeline to its holdings. Additionally, Koch Pipeline holds the largest ownership interest in the Colonial Pipeline system, strengthening its position within energy transportation markets.

Georgia-Pacific

Headquartered in Atlanta, Georgia-Pacific LLC (GP) ranks among the largest forest products companies in the United States. It specializes in producing pulp, paper goods, and construction materials primarily sourced from its own timberlands. GP’s offerings include tissue products, pulp and paper items, packaging solutions, building materials, and related chemical products.

The company manufactures widely recognized consumer brands such as Brawny, Angel Soft, Mardi Gras, Quilted Northern, Dixie Cups, Sparkle paper towels, and Vanity Fair napkins. Operating across 27 states, Georgia-Pacific serves an extensive customer base throughout North America.

Koch Industries initiated acquisitions of Georgia-Pacific assets before completing full ownership in 2005. Since then, GP has functioned as an independently managed subsidiary within Koch’s portfolio—playing a vital role in diversifying Koch’s business interests and revenue sources.

Guardian Industries

Guardian Industries is a manufacturer specializing in industrial glass, automotive components, and building materials, with its headquarters located in Auburn Hills, Michigan. The company produces both float glass and custom-fabricated glass products serving commercial, residential, and automotive sectors. Guardian employs more than 18,000 individuals and maintains operations throughout North and South America, Europe, Asia, Africa, and the Middle East.

Invista

Invista, acquired from DuPont in 2003 for $4.4 billion, is recognized for its polymer and fiber products, notably the "Stainmaster" carpet brand. Koch incorporated Invista into its polyester division KoSa, which it had fully acquired in 2001 by purchasing the remaining shares from IMASAB S.A. In 2019, the "Lycra" fiber brand was divested to Shandong Ruyi Investment Holding.

Koch Ag & Energy Solutions

Koch Ag & Energy Solutions (KAES) encompasses subsidiaries such as Koch Fertilizer, Koch Agronomic Services, Koch Energy Services, and Koch Methanol. It delivers fertilizers and plant nutrition products worldwide for agricultural, turf, and ornamental applications. Additionally, KAES offers advanced efficiency technologies tailored to the energy and chemical industries.

Koch Fertilizer ranks among the largest nitrogen fertilizer producers globally, with facilities or stakes across the U.S., Canada, Trinidad and Tobago, Venezuela, Italy, and other locations. Established in 1988 through the acquisition of Gulf Central Pipeline assets, Koch expanded its footprint with ammonia plants in North America alongside global sales agreements. The year 2010 marked the launch of Koch Methanol and Koch Agronomic Services; however, that same year saw the Venezuelan government nationalize a facility where Koch held a 35% ownership interest.

In 2011, Koch purchased British fertilizer company J&H Bunn Limited. Following this acquisition, Koch Fertilizer rebranded itself as Koch Ag & Energy Solutions (KAES) to better represent its broad agricultural and energy product offerings.

Koch Chemical Technology Group

Koch Chemical Technology Group, Ltd. along with its subsidiaries designs, manufactures, installs, and services equipment for process operations and pollution control as well as water purification and desalination systems. They deliver engineering solutions globally to both industrial and municipal customers, emphasizing innovation and operational excellence across various applications.

Koch-Glitsch

As a division of Koch, Inc., Koch-Glitsch specializes in engineering mass transfer and mist elimination equipment utilized by refineries and chemical plants worldwide. It commands a leading position through two joint ventures: The Eta Process Plant and Koch Modular Process Systems.

Eta stands as the foremost provider of deaeration plants globally, boasting over 400 installations that predominantly employ vacuum stripping methods for seawater treatment. Meanwhile, Koch Modular Process Systems focuses on modular mass transfer technologies for chemical purification, solvent recovery, and liquid-liquid extraction processes. This is supported by an advanced pilot plant facilitating ongoing process innovation.

Koch Minerals

Koch Minerals, LLC along with its subsidiaries operates as a significant global handler of dry-bulk commodities. Its activities include oil and gas exploration and production, manufacturing of oilfield products, as well as investments spanning steel and other related markets.

Koch Supply & Trading

Koch Supply & Trading engages in worldwide commerce involving crude oil, refined petroleum products, natural gas liquids, natural gas, liquefied natural gas, electricity, renewable energy sources, emissions credits, and metals. The firm has strategically expanded into markets such as the introduction of ultra-low sulfur diesel imports into Mexico.

Molex

Molex produces pin-and-socket connectors, specialized connector solutions, and sensors serving various sectors including data communications, telecommunications, industrial automation, solar energy, automotive manufacturing, aerospace and defense, medical technology, and solid-state lighting applications.

Environmental and safety record

Between 1999 and 2003, Koch Inc. incurred fines and penalties exceeding $400 million due to environmental compliance failures. Significant incidents include:

In 1994, a pipeline failure released more than 90,000 gallons of crude oil in Texas, damaging local wildlife ecosystems.

A 1996 rupture of an LPG pipeline near Lively, Texas resulted in an explosion that claimed the lives of two teenagers; a 1999 jury awarded $296 million to the victims’ families on grounds of negligence.

In 1999, Koch Petroleum Group acknowledged illegal discharges of aviation fuel into wetlands and unauthorized wastewater dumping into the Mississippi River; this led to a $6 million penalty plus cleanup obligations.

In 2000, the company agreed to pay what was then the largest civil fine under federal environmental statutes for 312 oil spills across six states—settling for $30 million in penalties alongside a $5 million commitment to environmental initiatives.

A federal indictment in 2000 accused Koch Industries of Clean Air Act violations at its Corpus Christi refinery; the company pled guilty in 2001 to inaccurate self-reporting of wastewater violations and incurred a $20 million fine.

Subsequent settlements included an $80 million investment in pollution control enhancements at refineries and an additional $4.5 million penalty.

In 2003, Flint Hills Resources was fined $200,000 for improper crude oil exports to Canada.

Other concerns involved asbestos-related lawsuits filed by employees of Georgia-Pacific, a Koch subsidiary. Despite these controversies, Koch received the Wildlife Habitat Council’s Conservation Education Award in 2015 for its ongoing environmental stewardship partnerships.

While critics contend that official reports underrepresent the company’s historical environmental impact, Koch’s targeted investments in compliance and sustainability programs demonstrate an effort to address regulatory challenges.

Political activity

Fred C. Koch, founder of the company, was instrumental in establishing the John Birch Society in 1958, known for its anti-communist stance. His son Charles Koch, serving as chairman and CEO of Koch Inc., co-founded the Cato Institute. The corporation supports the political action committee KochPAC.

The company’s political contributions primarily target legislative initiatives concerning taxation, energy policy, nuclear power development, defense funding, and financial regulatory reform. Greenpeace has criticized Koch for its influence on U.S. climate policy. Before 2008, a Canadian subsidiary provided support to the conservative Fraser Institute.

Koch opposes regulations on financial derivatives and restrictions on greenhouse gas emissions while funding free-market advocacy organizations. It has also resisted Low Carbon Fuel Standards (LCFS), contending that such standards would negatively affect refiners dependent on heavy crude oils.

Charles Koch authored an op-ed in The Wall Street Journal titled "Why Koch Industries Is Speaking Out," highlighting their dedication to backing politicians focused on reducing government deficit spending.

In 2020, Koch Inc. donated $375,000 to the Rule of Law Defense Fund associated with the Republican Attorneys General Association.

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