KOCH BROTHERS INDUSTRIES

INVESTOPEDIA - The Koch brothers have become well-known for their libertarian and conservative politics, and are often portrayed as significant personalities that impact elections and government decisions. 

However, despite the Koch brothers' fame as political influencers, their primary activities are centered around running Koch Industries Inc., of which they own 84%. This is a private company that has revenues topping $100 billion. However, it is not really a single company, but a conglomerate of companies the brothers own and operate.

The industries under the Koch umbrella are diverse, ranging from companies that deal with energy to spandex. Koch companies manufacture paper, process minerals, create fertilizers and refine oil.

We have selected seven top companies owned by the Koch brothers so that you can have a glimpse of the scope and nature of their business holdings. All information is current as of November 26, 2017.

1. Flint Hills Resources

Flint Hills is a fuel-producing company. It offers petroleum products, gasoline, diesel fuels, jet fuels and other oil products. The company's ethanol plants have a combined production capacity of more than 800 million gallons per year.

The company also explores biofuels. Flint Hills markets a variety of chemical applications, coatings, automotive parts and asphalt. Flint Hills markets and sells on a worldwide basis, including the United States, Asia, Australia, Europe, South America, Central America and New Zealand.

2. Georgia-Pacific

This is a paper company that produces paper, tissue, toilet paper, and building products and includes the well-known brands Quilted Northern tissue, Brawny paper towels and Dixie cups. Aside from these products, wallboard napkins, boxes, paper dispensers, and pulp round out the company's offerings.

The company employs more than 35,000 people in over 200 locations. Georgia-Pacific claims to be environmentally responsible. It is based in Atlanta, Georgia, but markets worldwide.

3. Guardian Industries

Think of Guardian Industries as a glass company. It manufactures glass for automobiles, building applications, fiberglass insulation and coated glass for architectural needs.

The company is known for its research and development of new applications for glass, such as energy-efficient windows.

Based in Michigan, Guardian Industries employees 18,000 people in the United States, South America, Europe, Africa, the Middle East and Asia.

4. Invista

Invista makes spandex, resins, chemicals and polymers. It is a spin-off of DuPont, now owned by the Koch brothers. The company concentrates on textiles and owns numerous brands such as Lycra, Tactel and Thermolite, as well as brands for outdoor gear, carpet (Stainmaster) and luggage.

In total, Invista owns 23 brands, and is involved in fabrics, fibers, plastics, polymers, chemicals, and the licensing of technology. The company operates in 20 countries and has 10,000 employees.

5. Molex

Molex creates electronics to solve technical problems in electric cars, robotic surgery and even the Mars Rover. The company is also involved in fiber optics, smartphones and defense applications.

Molex counts nearly 100,000 products in its catalog, and has more than 42,000 employees in 39 countries.

6. Koch Ag & Energy Solutions

Koch Ag and Energy Solutions operates three Koch Industries companies. Koch Fertilizer manufactures and markets a wide variety of fertilizer products used in the agriculture industry. It operates a global distribution network with terminals in North America, South America, and Europe. Koch Energy Services markets electricity and natural gas in North American markets.

It uses its expertise in market analysis, purchasing, hedging, and energy logistics to provide comprehensive services to other companies. Koch Methanol is a methanol supplier. It was originally established to fulfill the needs of Koch Industries subsidiaries, but it now works with other companies as well.

7. Koch Pipeline Company

This company owns pipelines throughout Texas, Minnesota, Missouri, Iowa, Wisconsin, and Illinois. The pipelines transport oil and refined petroleum, as well as natural gas. Some of the pipelines are associated with Flint Hills Resources.

Koch Pipeline Company operates approximately 4,000 miles of pipeline in six U.S. states, the longest of which include the 580-mile Wood River Pipeline in Missouri and a 540-mile pipeline system in South Texas, which both transport crude oil.

8. Time Inc.

Meredith Corp (MDP.N ) announced on Nov. 26, 2017 that it will buy TIME Inc (TIME), the publisher of magazines like Fortune, Sports Illustrated and People, in a $1.84 billion all-cash deal backed by the Koch siblings.

The brothers will contribute $650 million in preferred equity via Koch Equity Development (KED), the investment arm of Koch Industries. The press release announcing the acquisition said KED will not have a seat on Meredith's board or any influence over its operations. The deal is expected to close in the first quarter of 2018.

The Bottom Line

Koch Industries Inc. is so vast it is hard to grasp its full reach. Because Koch Industries is a private company, it is not required to publish the kinds of financial information that publicly-traded companies publish. Figures about the size of Koch Industries and the companies it owns are not as reliable as figures for public companies.

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Earlier:

2016, January, 21, 19:05:00 THE NEGATIVE OIL PRICE Flint Hills Resources LLC, the refining arm of billionaire brothers Charles and David Koch’s industrial empire, said it offered to pay $1.50 a barrel Friday for North Dakota Sour, a high-sulfur grade of crude, according to a corrected list of prices posted on its website Monday. It had previously posted a price of -$0.50. The crude is down from $13.50 a barrel a year ago and $47.60 in January 2014.

2014, January, 31, 11:40:00 KOCH BROTHERS OIL & GAS PRNEWSWIRE - Charles and David Koch of Kansas are the wealthiest individuals in America's oil and gas sector, with a combined net worth of US$83 billion, according to a Wealth-X Top 10 list that includes billionaires from Texas, New York and Oklahoma.

2014, January, 10, 12:43:05 МИЛЛИАРДЕРЫ БРАТЬЯ КОХ FORBES - Человек, который, по оценке Forbes, входит в число 50 самых влиятельных людей в мире, топ-20 самых богатых и, пожалуй, в дюжину самых ненавидимых людей на планете, постоянно рефлексирует. Однако, учитывая, что Чарльзу Коху исполнилось 77 лет, это простительно. Простительно потому, что недавно он назвал президентские выборы «виной всех войн», и потому, что Koch Industries является второй крупнейшей частной компанией в Америке (после Cargill) с выручкой $115 млрд.