Precision Agriculture
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Discovery OCTOBER 2011 THE QUARTERLY NEWSLETTER OF KOCH COMPANIES Precision agriculture As the world’s population grows, so Many of these investments also benefit Both Nitamin® and AGROTAIN® prod- does the demand for food, animal feed, the environment. Advanced technology ucts reduce nitrogen losses and extend fiber and energy. in Enid, for example, reduces energy the amount of nitrogen available for Without chemical fertilizer, meeting those and water use while increasing opera- healthier plants and higher yields. tional reliability. demands would be impossible. “Agrotain International is an outstanding Koch Fertilizer, one of Koch Industries’ But as big as it is, Koch Fertilizer wants company with a long history of provid- fastest-growing companies, is a major to create even more value. ing value-added products,” Packebush player in global fertilizer markets. But “What we’re doing,” explained Packe- said. “It also has a very dedicated, that wasn’t always the case. bush, “is evolving beyond a typical fertil- customer-focused workforce.” izer producer and wholesaler. “We were a pretty traditional commod- Packebush believes the combination of ity-based producer for many years,” said “We certainly want to optimize and Agrotain International with Koch Fertil- Steve Packebush, president of Koch grow our existing fertilizer business, but izer’s assets, research capabilities and Fertilizer. “And modestly sized, too.” we also want to broaden our distribu- global footprint “lends itself to significant All that began to change eight years ago, tion channels and develop or acquire growth opportunities in the enhanced- when Koch Nitrogen purchased Farm- enhanced-value products. efficiency fertilizer market.” land’s nitrogen fertilizer business in the “We want to research and develop the Outlook U.S. and then began acquiring interna- tools and technologies that will lead to tional assets. better products for our global customers. Given the rapid growth in global fertilizer Today, Koch Fertilizer is the world’s “Our head of agronomy, Dr. Greg Schwab, markets, Packebush sees several areas of third-largest maker and marketer of calls that a ‘precision agriculture’ strategy.” opportunity in 2012, including hiring. “To expand our business the way we nitrogen fertilizer and has expanded its Agronomic services reach to Africa, Asia, Europe and North want, we’ll need to hire a lot of new em- and South America. To help accomplish all this, Koch Fertil- ployees next year,” Packebush said. “What changed,” Packebush said, “was izer has created a new subsidiary: Koch “We need that talent to continue devel- our vision, which enabled us to see Agronomic Services, LLC. oping our step-out concepts, such as greater opportunities.” It has already completed two significant Koch Agronomic Services and a new Investments acquisitions this year. business called Koch Methanol.” Packebush knows that rapid growth can The first, which closed on April 20, was In Enid, Okla., home of Koch Nitrogen’s create its own set of challenges. largest U.S. fertilizer plant, employment the purchase of Nitamin® and Nitamin is up by 20 percent following a multi- Nfusion® slow-release fertilizers from “It’s so easy to forget about watching your million dollar modernization project. Georgia-Pacific Chemicals. costs, but we’ve got to maintain efficiency. That project is part of a North American The second was the Sept. 30 acquisition “And when you’re successful, it’s easy to growth effort involving more than $250 of Agrotain International, a St. Louis- lose your humility. million in investments since 2005. Such based fertilizer maker. Agrotain is the “That’s why Charles Koch is always re- investments have generated more than world’s largest producer of Stabilized- minding us to never confuse brains with 100 new jobs at Koch facilities. Nitrogen™ fertilizers. a bull market.” www.kochfertilizer.com this issue… Charles Koch’s 50th service award pg 2 The Acme of Gypsum pg 7 Eagle Ford: Opportunity knocks pg 4 Perspective: CFO Steve Feilmeier pg 8 Postal Pipeline I am an undergraduate I am a student at D.C. Everest High School junior in chemical en- in central Wisconsin. I have a feeling you gineering at Penn State may be receiving a lot of unpleasant mail University and would like from my state, but that’s not what this let- to thank the Fred C. and ter is about. Mary R. Koch Foundation In keeping up with the news the last few for its generous scholar- months, I’ve heard all the things they’ve ship contribution to been saying about you, your brother and my education. your company. I see the good in what I hope one day to be- you’re doing. come a professor and to I just finished reading your book,The help future students have Science of Success, and I wanted to express the same positive experi- my amazement at what you’ve done. You’ve ence that I have had as taken the company your father started, an undergraduate. infused steadfast principles and built it up. I thank the Fred and Mary Now you’ve taken the wealth you worked Koch Foundation for its so hard to create and you’re using it to cre- scholarship assistance; its ate value in society. You’re trying to create help has already given me what this country can’t comprehend it Labor Day weekend wildfires in central Texas (above) so much, and will make my goals for the needs. I respect that. came perilously close to FHR’s Bastrop terminal. Although future achievable. some employees in that area were ordered to evacuate, Very few men have taken rock-solid prin- there were no reports of damage to their homes. Michael Howard ciples and risen to the level you have. Even Wilmington, Del. fewer would be willing to share them with aspiring entrepreneurs like me. In the January issue of Discovery, there As I continue on my path to create value was a photo of David and Charles Koch on in society and create my own business, I page eight. In it, Charles wears a lapel pin. hope to work with Koch Industries. I’m curious to know what Charles is Thank you, Mr. Koch, for everything displaying. you’ve done for my state and our country. Dr. Ralf Fischbach I am amazed at what you’ve done. Koch Membrane Systems God bless, Aachen, Germany Tyler Ebert Weston, Wis. What you noticed is a Koch Industries service award pin. It has one diamond for each decade of service. On Nov. 1, Charles will celebrate his fiftieth anniversary at Koch. To “like” and follow Koch companies and leaders – Thanks for sharing the link to the very including Georgia-Pacific, INVISTA, Flint Hills intriguing video demonstrating the im- Resources, Matador Cattle Co. and Charles and portance of economic freedom (http:// David Koch – visit Koch Industries’ Facebook page. economicfreedom.org). Letters and other submissions become the property of Koch It’s a shame Mr. Koch is not running for Industries, Inc., and may be reproduced in whole or in part, President. Actually, he can probably have including your name, for any purpose and in any manner. more influence where he is. Letters may be edited for length or clarity. D. Dale Fowler, president Discovery October 2011 | Volume 17 | Number 4 Victoria Economic Development Corp. Editorial board Questions? Comments? Philip Ellender Contact: Rod Learned Victoria, Texas Rich Fink 316.828.6136 Jeff Gentry [email protected] Dale Gibbens Publication design A new video, “How to Create a Job,” is now available at Greg Guest Amber Vogts Charles Koch this site, as is the video mentioned above: “Economic Koch Creative Group Freedom and Quality of Life.” Jim Mahoney Dave Robertson www.kochind.com ©2011, Koch Industries, Inc. Koch is an EOE. M/F/D/V 2 International News ©2011 Canterbury of New Zealand, Ltd. Auckland – Players in the Rugby World Cup wore uniforms Zhangjiagang – PURON® modules, made by KMS Matador - These Japanese cattle have been raised on all three Koch containing INVISTA’s LYCRA® SPORT fabric. are treating this city’s municipal wastewater. ranches in Kansas, Montana and Texas. New Zealand – Like the Olympics or 2 million – and growing – wastewater Brazil – Few people would associate World Cup, the Rugby World Cup is an treatment is an important issue for Portuguese—let alone Japanese—with international competition held every Zhangjiagang, especially since much of a Texas ranch, but both languages were four years. New Zealand hosted (and the area’s surrounding economy relies on heard when Brazilian ranchers came to won) this year’s RWC, which featured fishing and water-based agriculture, such see some Akaushi cattle at Koch’s Mata- 20 teams playing a total of 48 matches, as rice paddies. dor Ranch in June. including the Oct. 23 final. In choosing where and how to build a new Akaushi originated in Japan and are closely Because the game involves fierce and wastewater treatment plant, city officials related to the cattle that produce world- very physical competition, the uniforms had to deal with high property costs, the famous Kobe beef. can take a beating. Durability is a must, close proximity of their preferred site to Akaushi beef, marketed in the U.S. by as are good looks and comfort. residential areas and strict wastewater Heartbrand Beef, is praised for its mar- Players are also interested in customized, discharge standards. bling, flavor and heart-healthy characteris- position-specific designs and fabrics that Taking all these factors into account, the tics, including lower cholesterol. A recent can actually help them evade tackles. engineering company responsible for sampling of Akaushi steaks and burgers In creating the uniforms for this year’s building Zhangjiagang’s new wastewater at the Koch Café in Wichita created long competitors, Canterbury of New Zea- plants chose PURON® membrane mod- lines but plenty of smiling faces.