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Building a Road to Bio-Breakthroughs

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Building a Road to Bio-Breakthroughs Discovery JULY 2014 THE QUARTERLY NEWSLETTER OF KOCH INDUSTRIES Building a road to bio-breakthroughs Imagine building a brand-new factory ucts such as butadiene, a key ingredient the formation of a biotechnology for making commercial products. Then for nylon. commercialization team. imagine that factory is a thousand times “There are thousands of alternative “We are pursuing technologies that smaller than a grain of rice. ways a micro-organism can process could transform today’s supply chain,” That’s exactly what researchers at feedstocks, so this is really a bit like a Greenfield said. “Making our vision for INVISTA are working to develop. road-building project. Sometimes you biotechnology a reality could create a INVISTA is researching ways to use tiny, have to widen the path; sometimes you step-change in INVISTA’s profitability.” single-celled organisms to manufacture have to detour traffic. Republic of Science chemicals that are currently produced by “If we can find a way to ‘teach’ them to traditional petroleum-based methods. take the best route toward making a high- Work on bio-breakthroughs is happen- Dr. Gary Smith, vice president of Sustain- value product from a lower-cost feed- ing across Koch. GP is investigating ability for INVISTA Intermediates, says stock, the implications are significant.” new ways to use cellulosic feedstocks, while Koch Agronomic Services has the potential benefits of this innovative Exceeding expectations approach are significant. been analyzing the use of biologicals in production agriculture. “By applying biotechnology,” Smith When INVISTA formed a sustainability explained, “we hope to be able to make team in 2010, one of its focus areas was At its plant in Beatrice, Nebraska, high-value products out of lower-cost the production of bio-derived chemicals Flint Hills Resources and its joint venture feedstocks while also using much less and polymers. A year later, a biotech- partners have made great strides in finding energy and creating far fewer emissions.” nology research team was up and run- ways to create biofuels using different, lower- ning in Wilton, England. cost feedstocks than corn or soybeans. How does it work? The Wilton team now has 20 scientists — “What’s significant about Beatrice,” “Normally, organisms create waste including molecular biologists, metabolic explains Matt Philips, director of products as they consume food sources engineers and bioprocess developers. technology innovation for FHR, “is to grow,” Smith said. “What we’re INVISTA is also collaborating with a the potential to make high-quality bio- trying to do is number of external derived fuels that are very competitive reprogram them companies and and economically viable on their own. to make a product, universities. They don’t require subsidies or mandates. such as adipic “We’ve already ap- “All of us at Koch are constantly sharing acid, instead. plied for more than knowledge about these innovations.” “If you can get 30 patents in just two Smith said, “This is the Republic of billions of these years,” Smith said. Science mental model that Charles single-celled “That’s at least four Koch highlighted in his book. When we organisms to Microbes look small and simple, but each contains times more than what complex pathways with production potential. share our progress and problems with do that, you’ve we had expected.” each other, we often come up with new essentially created Bill Greenfield, president of INVISTA and unexpected things. a chemical factory in a test tube.” Intermediates, believes any practical re- “This is very exciting. Not many people INVISTA is investigating a wide range sults are probably four or five years away get to do the kinds of things we’re doing.” of “biological pathways” to make prod- from coming to market, but the rapid progress to date has already prompted www.INVISTA.com this issue… $25 million gift to UNCF pg. 2 Preparing for earned success pg. 4 Ongoing acquisitions pg. 6 Perspective: Managing Koch’s brand pg. 8 Postal Pipeline I wanted to send a personal thank you to Thank you for the Koch Industries and the Charles Koch excellent turnout at Foundation for giving support to the the Eagan City Hall United Negro College Fund. for the unveiling of the I am a liberal Democrat and black Dakota County Fire American, and I’ve always been objective Chiefs Association toward those who focus on helping oth- Kitchen Fire Trailer, ers as their first priority. donated by Flint Hills Although I didn’t attend a traditional Resources. black college, I received help from the I appreciate all the sup- Koch family at different times growing up port in helping secure in Wichita. That support has helped me this trailer. A huge throughout my life. thank you to Flint Hills I’m sure those who will receive assistance for its continued sup- from Koch’s $25 million donation will be port of Dakota County very appreciative. Public Safety! Mike Scott Minnesota – FHR’s Pine Bend Refinery recently donated a $30,000 “kitchen” trailer James W. Herring Jr. to the Dakota County Fire Chiefs Association. It helps firefighters and the public Union City, New Jersey Fire Chief Eagan, Minnesota learn how to deal with grease fires, where using water only makes things worse. www.kochind.com/Newsroom/News_releases.aspx Thank you for your generous contribu- Having read your April 3 Wall Street Thank you for the excellent article ap- tion to the United Negro College Fund. Journal op-ed, I encourage you to refer pearing in the April 3 Wall Street Journal. The money you contribute will help to “The Federalist Papers” among other I could not agree with you more. sources in our legacy of liberty. many deserving young people. As Milton Friedman made clear in his As a parent of a son who graduated “Federalist No. 62” suggests that people book, “Capitalism and Freedom,” there is from Hampton University, I can truly will be ill-served by laws too “volumi- a schism between the collective society nous” to be read, too “incoherent” to “be appreciate the effectiveness of funds and a free society. The principles that understood,” and so often changed “that needed to ensure students can complete no man who knows what the law is today you advocate have been at war with the their studies. can guess what it will be tomorrow.” principles of the current administration for at least 150 years. Marilyn Mitchell “Federalist No. 62” goes on to imply that New York, New York such legislation will be a boon to politi- I greatly respect and admire your efforts cal insiders, so “it may be said with some to restore a free society. truth that laws are made for the few, not Ronald S. Cope for the many.” Chicago, Illinois Welcome to the fight to restore American liberty. How to get Discovery David R. Zuckerman To read Charles Koch’s op-ed, visit: Bronx, New York http://webreprints.djreprints.com/3365550225628.pdf Printed copies of Discovery are available to all Koch facilities, upon request. Electronic copies dating back to 2007 are To “like” and follow Koch companies and leaders – Discovery July 2014 | Volume 20 | Number 3 including Georgia-Pacific, INVISTA, Flint Hills Resources, also available at www.kochind.com by Editorial board Questions? Comments? Matador Ranch, Koch Pipeline, and Charles and David Melissa Cohlmia Email us at: clicking on Newsroom, then Publications. Koch – visit Koch Industries’ Facebook and Twitter pages. Philip Ellender [email protected] Rich Fink For extra copies, or to correct the quantity Jeff Gentry Publication design you receive, email your request to Greg Guest Megan Pratt Letters and other submissions become the property of Koch Charles Koch Koch Creative Group [email protected]. Steve Lombardo Industries, Inc. and may be reproduced in whole or in part, Jim Mahoney including your name, for any purpose and in any manner. Walt Malone www.kochind.com Letters may be edited for length or clarity. Dave Robertson © 2014 Koch Industries, Inc. Koch is an EOE. M/F/D/V. 2 International News Italy – Molex recently announced two Italian acquisitions — both of which are now completed. U.K. – (L-R) Carl Hagert, Maryna Romanenko, Peter Leoni, Erin Abercrombie and Michiel Prins Westec S.r.l. was acquired May 27 and Flamar on July 22. celebrate KS&T’s latest award: Natural Gas House of the Year. Paranaguá – When it comes to Brazil, consecutive year without a Lost Time The Flamar acquisition, which was subject most eyes were focused on the World Incident — the longest interval without an to anti-trust approval, closed on July 22. Cup in June and July. But KFTU, the LTI at any Koch manufacturing facility. Flamar now operates as a subsidiary of Uruguay-based branch of Koch Fertilizer Milan – Italy has become a “Molto Buono” Molex Incorporated. Trading, was focused on something else: (very good) place for Molex lately. The www.molex.com a new, bonded warehouse that opened company has announced two acquisi- in April. tions there in less than two months. London – June 11 was a celebration day Located in the port city of Paranaguá, On May 27, Molex announced its for Koch Supply & Trading as its about 250 miles southwest of São Paulo, acquisition of the heavy-duty Geneva-based natural gas trading team KTFU’s state-of-the-art storage facility connector business of Westec S.r.l., an was honored at Energy Risk magazine’s has a capacity of up to 57,000 metric tons. industrial manufacturer based in Italy. awards conference in London. The company intends to market and sell The awards recognize “excellence in the a variety of fertilizers from the site. Westec makes more than 6,000 products, including a wide range of junction boxes, energy and commodity market.” KS&T Although the potential for business in multi-pole connectors and connector was the Natural Gas House of the Year Brazil is enormous, the country poses assemblies.
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