User:NMS Bill/Koch Industries/Corporate history
Corporate history
[edit]Predecessor companies
[edit]In 1925, Fred C. Koch joined an MIT classmate at an engineering firm in Wichita, Kansas, which was renamed the Winkler-Koch Engineering Company. In 1927 he developed a more efficient thermal cracking process for turning crude oil into gasoline. This process threatened the competitive advantage of established oil companies, which sued for patent infringement. Temporarily forced out of business in the United States, Koch turned to other markets, including the Soviet Union, where Winkler-Koch built 15 cracking units between 1929 and 1932. During this time, Koch came to despise communism and Josef Stalin's regime.[1][2] In his 1960 book, A Business Man Looks at Communism, Koch wrote that he found the Soviet Union to be "a land of hunger, misery, and terror."[3] According to Charles Koch, "Virtually every engineer he worked with [there] was purged."[2]
In 1940, Koch joined new partners to create a new firm, the Wood River Oil and Refining Company, which is today known as Koch Industries. In 1946 the firm acquired the Rock Island refinery and crude oil gathering system near Duncan, Oklahoma. Wood River was later renamed the Rock Island Oil & Refining Company.[4] Charles Koch joined Rock Island in 1961, having started his career at the management consulting firm Arthur D. Little. He became president in 1966 and chairman at age 32, upon his father's death the following year.[5][6]
Koch Industries
[edit]The company was renamed Koch Industries in honor of Fred Koch, the year after his death. At that time, it was primarily an engineering firm with part interest in a Minnesota refinery, a crude oil-gathering system in Oklahoma,[2] and some cattle ranches.[7] In 1968 and 1969, Charles tried to buy Union Oil's share of the Great Northern Oil Company and its Pine Bend Refinery, but Union Oil was unwilling to sell. When J. Howard Marshall II threw his lot in with Koch, they together acquired a majority interest in the company.[4] Ownership of Pine Bend refinery led to several new businesses and capabilities, including chemicals, fibers, polymers, asphalt and other commodities such as petroleum coke and sulfur. These were followed by global commodity trading, gas liquids processing, real estate, pulp and paper, risk management and finance.[1]
In 1970, Charles was joined at the family firm by his brother David Koch. Having started as a technical services manager, David became president of Koch Engineering in 1979.[1]
References
[edit]- ^ a b c Koch, Charles C. (2007). The Science of Success: How Market-Based Management Built the World's Largest Private Company. John Wiley & Sons, Inc. p. 6. ISBN 978-0-470-13988-2.
{{cite book}}: Cite has empty unknown parameter:|coauthors=(help) - ^ a b c Daniel Fisher (13 March 2006). "Mr. Big". Forbes.
- ^ Koch, Fred C. (1960). A Business Man Looks at Communism. Wichita, Kansas.
{{cite book}}: Cite has empty unknown parameter:|coauthors=(help)CS1 maint: location missing publisher (link) - ^ a b J. Howard, Marshall II (1994). Done in Oil: An Autobiography. College Station: Texas A&M University Press. ISBN 0890965331.
{{cite book}}: Cite has empty unknown parameter:|coauthors=(help) - ^ Bruce Upbin; Brandon Copple (14 December 1998). "Creative destruction 101". Forbes.
- ^ "Summary of Koch Industries History". sec.gov. U.S. Securities and Exchange Commission. 14 November 2005. Retrieved 18 February 2010.
- ^ John, Lincoln (1989). Rich Grass and Sweet Water. College Station: Texas A&M University Press. ISBN 0-89096-387-8.