Company Overview
Koch Industries, Inc., headquartered in Wichita,Kansas, is one of the largest privately-held companies in America, with estimated annual revenues exceeding $100 billion. Founded in 1940 by Fred C. Koch, Koch Industries today is operated by brothers Charles G. and David H. Koch.
Charles G. Koch serves as chairman of the board and chief executive officer of Koch Industries, Inc., while David H. Koch is executive vice president. Edward Brodkin, executive vice president and Mark Holden, senior vice president and general counsel, are two of the top-level executives who are assisting Koch brothers in managing the company.
Koch Industries is a global company with businesses engaged in everything from refining and chemicals to ranching, forest products and commodity trading across a variety of industries. These industries include oil and gas (including Midstream, Pipeline, Chemicals and Refining ), the distribution of asphalt and refined coal tar chemicals, fertilizers, industrial products (including forest and consumer products), and commodity trading operations. Koch also owns a controlling interest in Georgia Gulf Corporation, a public company with annual sales of more than $5 billion.
Business Strategies & Differentiators
Koch Industries possesses an extremely diversified business portfolio in terms of sectors, industries and geographical locations. This diversification allows the company to spread its risks across different markets, while at the same time exploiting a variety of different economic and regulatory environments to improve margins and expand its market presence. This diversified portfolio is enhanced by the fact that Koch Industries engages in a wide variety of businesses while simultaneously retaining a large amount of operational control over its subsidiaries.
At the same time, Koch Industries is highly differentiated in the way it operates its businesses. Koch Industries owns outright or controlling interests in virtually all of its companies. This enables Koch Industries to direct the strategies and activities of its subsidiaries. At the same time, Koch Industries also distributes responsibilities among different divisions and subsidiaries, allowing for a degree of autonomy and flexibility in decision making.
Koch Industries is also known for its adherence to certain core values, including stewardship, responsibility, integrity and respect. The company places a strong emphasis on maintaining these principles in all of its operations and activities and has built an impressive reputation based on them.
Conclusion
Koch Industries is one of the largest privately-held companies in the world, having established a successful and profitable portfolio of businesses across a variety of sectors. By adhering to core values such as stewardship, responsibility, integrity and respect, Koch Industries has developed a strong reputation for its activities. A highly diversified business portfolio and a focus on operational control also help to differentiate Koch Industries from other large companies in its sector.
