iscovery THE QUARTERLY NEWSLETTER OF KOCH INDUSTRIES January 2007 Big Night at the Museum avid H. Koch, co-owner most of his contributions fund “I hope with all my heart of Koch Industries, is a medical research. that these contributions will Dgenerous man. He has enable many great discoveries donated more than $300 million Funding the fight to be made that will relieve the to a variety of cultural, public “When I was diagnosed death and suffering caused by policy, educational and health- with prostate cancer in 1992,” cancer.” related causes in recent years. Koch says, "my prognosis was He is also a busy man, serv- very bad. Namesake ing on more than 20 non-profit “I was shocked to learn Following a 2005 classroom boards and working full-time there was no real prostate field trip with his oldest son, at an age when most people cancer research going on at David Jr., Koch decided to are happy to be retired. the Memorial Sloan-Kettering donate $20 million to the David Koch attended the Cancer Center in New York American Museum of Natural Massachusetts Institute of City where I was being treated, History in New York. Technology, where he earned so I decided to make a large Much of that contribution bachelor’s gift to Sloan-Kettering to will help maintain the famous and master’s accelerate that effort. dinosaur exhibits that were degrees in “When a person gets cancer,” the subject of a popular movie chemical Koch explains, “they are often during the holidays. engineer- transformed into a passionate Last September, the museum ing. crusader against the disease. I hosted a dinner to celebrate His con- am one of those individuals." his generosity. tributions to Last December, he was hon- As the Kochs stepped out of his alma ored by Johns Hopkins for his their car and walked up the mater $20 million commitment to museum’s front stairs, they include help pay for that university’s were greeted by a giant ban- Baltimore - The David H. Koch funding the new cancer research building ner above the entrance: Cancer Research Building at David H. in East Baltimore. “Welcome to the David H. Johns Hopkins was dedicated Dec. 4, 2006. Koch Koch also serves on the Koch Dinosaur Wing.” School of national advisory board of the “Look, Papa!” exclaimed Chemical Engineering Practice. National Cancer Institute and eight-year-old David Jr. “They He has also committed $50 has contributed millions to the named the dinosaur hall for me!” million toward a 250,000- M.D. Anderson Cancer Center His father couldn’t help but square foot cancer research and the Prostate Cancer smile. “That’s right, son. I laboratory at MIT. In fact, Foundation. guess they did.” this issue... Year In Review Pg 5 INVISTA Innovation Pg 9 Science of Success Pg 10 Perspective: Charles Koch Pg 12 Letters may be edited for length or clarity Since Koch Industries has Cities had so many changes in the Marathon, run last year, why not publish pro- at the begin- files or interviews with some of ning of the upper management of vari- October, was ous Koch companies? no exception. Hearing how our MBM® It is impos- Guiding Principles are put to sible for a work across a wide variety of marathon businesses would be interest- runner to ing. It would show us how thank all the other Koch companies work people who and help us get to know their help make the managers. event run so If this idea is already under smoothly, but consideration, consider this a I’d at least vote to continue the effort. like to thank those from Flint Kevin Cassidy, Hills Resources who worked at National Youth Entrepreneurship Process engineer the water station at one of the challenge. The money can be Koch-Otto York early water stops. used for college expenses or as Wichita, Kan. Without volunteers helping at seed capital. the water stations, running a Abby’s business plan for The One way or another, every marathon would be much more Scribbler – a nail polish applica- POSTAL PIPELINE POSTAL feature article in Discovery difficult. The FHR group was tor pen she invented – has attempts to incorporate exam- very encouraging, cheering for drawn attention from several ples of our Guiding Principles at all of us. Of course, they also international cosmetics compa- work. Due to space constraints, had plenty of beverages on nies and potential investors. On the cover: A we are less likely to publish pro- hand, ready for us to drink. Fifteen years ago, there were T-Rex skeleton files of most leaders. Thank you FHR for all your less than a dozen YEK students on display in We do, however, routinely support and encouragement of enrolled in a single eight-week the David H. Koch Dinosaur publish editorials by our board marathon runners! course. Today, there are 650 Hall at the members and have also fea- YEK students in 19 high American tured our general counsel, vice Catherine Wenzlick schools, in addition to the Museum of president of Human Resources Koch Supply & Trading 7,500 students who have com- Natural History. and director of federal govern- Wichita, Kan. pleted the YEK program. Koch Hall con- tains the largest ment affairs. More information about Youth collection of Suggestions and comments Flint Hills Resources has spon- Entrepreneurs of Kansas is avail- real dinosaur regarding the content of sored a water table at the Twin able on the Web at yeks.org. fossils in the Discovery are always welcome. Cities Marathon for five years. world. Volunteer workers at that table included a dozen FHR employ- It takes thousands of volun- ees and about 80 high school iscovery teers to organize and efficiently cross-country runners. manage a marathon. The Twin JANUARY 2007 VOLUME 13 NUMBER 1 Editorial Board Rich Fink Charles Koch Congratulations Jeff Gentry Jim Mahoney to Abby Lewis Dale Gibbens Dave Robertson (above, far left, at Mary Beth Jarvis Katie Stavinoha Cover photos: The American Museum NASDAQ), a Youth of Natural History and John Hopkins Entrepreneurs of University. Kansas student at Reprints? Questions? Comments? Contact: Rod Learned Kapaun Mt. Carmel (316) 828-6136 High School in [email protected] Wichita. Abby was Publication design: Richard Bachman awarded a first Koch Creative Group place prize of ©2007, Koch Industries, Inc. St. Paul, Minn. - FHR Employees and high school $10,000 in the http://www.kochind.com http://www.kochehs.com volunteers at a Twin Cities Marathon water station. Smith Barney/NFTE Koch is an EOE. M/F/D/V 2 INTERNATIONAL NEWS Singapore and eastern China.” Those projects are all scheduled for completion this year. In addition, INVISTA plans to acquire other facilities and pur- sue additional of wetland, field and forest, growth opportu- the area offers hiking, skiing, Foshan - INVISTA’s Bill Ghitis stands at the podium nities around the canoeing and skating facilities during the grand opening ceremony for the com- world. and is well-known for its pany’s newest spandex venture. Special guests included senior leaders of the Foshan municipal “Our bottom restoration programs for government, Sanshui district government, Xinan line is that we are endangered species. town government and the Chairman of Foshan – and plan to Last fall, INVISTA made a Plastics Group, INVISTA’s partner in the plant. remain – the $15,000 donation to the world’s largest, Friends of Mac Johnson Guangdong - INVISTA’s lowest cost, most profitable Wildlife Area. This non-profit new Chinese joint-venture producer of high-quality span- group of volunteers helps pre- spandex plant in Foshan dex fibers, including our serve, protect and promote the celebrated its grand opening world-leading LYCRA® brand.” Wildlife Area and its resources. Nov. 1, 2006. INVISTA began selling span- INVISTA’s contribution The $128 million Foshan dex fiber in China in the 1970s. enabled the volunteers to project was launched shortly It now has sales and market- improve trails and renew signs after the acquisition of ing offices in Beijing, Shanghai around the property, and to INVISTA in 2004. and Guangzhou, with joint- add some much-needed furni- It is the largest foreign venture manufacturing plants ture in the volunteer office. investment ever made in in Qingpu and Lianyungang. “This is the primary conser- Guangdong’s fiber industry. LYCRA®, the company’s flag- vation/wildlife property in the When both of its production ship premium spandex fiber, Brockville/Maitland area,” lines are fully operational, the enjoys extremely high brand explains Paul Brown, INVISTA’s plant will provide 12 kilotons recognition in China. Eighty manager of government and of annual capacity. percent of Chinese consumers public affairs in Canada. “We The facility is an important surveyed prefer garments with believe our contribution will part of INVISTA’s global LYCRA® fiber over generic benefit all those who enjoy growth initiative, which will spandex fabrics. and appreciate this resource, add about 50 kilotons of not just our employees.” LYCRA® and ELASPAN® span- Brockville - INVISTA’s dex fiber production capacity Maitland plant in southeastern over the next three years. Ontario is unique. It is the Bill Ghitis, INVISTA Apparel’s company’s only facility making president, says the company food-quality adipic acid – already has plans to build the prime ingredient in fruit- another spandex production flavored gelatin. facility in China. That facility When employees are enjoy- is expected to begin produc- ing time off from that plant, tion by the end of 2008. many of them make the short “We also plan to expand and drive north of Maitland to a upgrade our existing facilities unique recreation destination: Brockville - Colleen Jenkins, daughter of and ventures in Brazil, the UK, the Mac Johnson Wildlife Area, INVISTA employee Marc Jenkins, holding Ariadni, a Harris Hawk, at Ontario’s Mac the U.S.