Trading Facts

Based in Wichita, Kan., Koch Industries, Inc. is one of the largest private companies in America according to Forbes magazine. It owns a diverse group of companies involved in refining and chemicals; process and pollution control equipment and technologies; minerals; fertilizers; polymers and fibers; commodity trading and services; forest and consumer products; and ranching. Koch companies have a presence in nearly 60 countries and employ about 67,000 people. Since 2003, Koch companies have invested more than $43 billion in acquisitions and other capital expenditures.

More than 40 years ago Koch companies began trading crude oil, a business that has grown to include daily trades of about 50 types of crude around the globe. Today, they have expanded their trading operations to include dozens of other commodities and sophisticated risk-management tools, positioning Koch companies and their customers to respond to ever-changing global markets. Koch companies have traders or originators in Wichita, Houston, New York, Canada, Cayman Islands, France, India, the Netherlands, Singapore, Switzerland, and the United Kingdom. They also move products through hubs in the United States, Canada, Mexico, South America, Europe, Asia, Australia and the Middle East.

The purpose of trading
Trading operations increase marketplace efficiencies by bringing buyers and sellers together – domestically and around the globe – and providing for liquidity in key commodity and financial markets. In addition, Koch companies that offer risk management tools and other products help commodity buyers and sellers manage their financial exposure in these markets.

Trading approach
Traders employed by Koch companies are students of the marketplace, bringing a disciplined, strategic approach to the business. They emphasize market analysis, and are centered on knowledge systems and customer relationships. Using decades of commodities trading experience, traders employed by Koch companies are growing the trading businesses and expanding into new products.

Koch-affiliated trading companies

Koch Supply & Trading companies around the world trade and provide risk management services in crude oil; refined petroleum products; natural gas and gas liquids; gas, power and emissions; industrial metals; and other commodities. One of the companies owns a refinery in Rotterdam, the Netherlands.

Trading performed by Flint Hills Resources’ companies focuses on ensuring supplies of feedstock for its refineries in Alaska, Minnesota and Texas.

Koch Minerals, LLC and its subsidiaries are among the world’s largest dry-bulk commodity handlers, marketing and trading more than 40 million tons annually. Koch Carbon, LLC trades and transports petroleum coke, coal, sulfur, cement, and other related commodities. As part of this trading business, the company employs a network of bulk import/export terminals in the United States and Europe. Koch Pulp & Paper Trading trades pulp, paper, recycled paper products and lumber products.

Koch Fertilizer, LLC and its affiliates trade anhydrous ammonia, potash, phosphates, urea, and UAN globally. The company owns or has interests in nitrogen fertilizer plants in the United States, Canada, and Trinidad and Tobago, and cover global demand through state-of-the-art terminals in the U.S., Canada, Mexico, Australia, France and the United Kingdom. The company and its affiliates, including Koch Fertilizer Trading, Sarl; Koch Fertilizer Products SAS; and Koch Nitrogen Company LLC; have the capability to manufacture, market and distribute more than 13 million metric tons of fertilizer products annually.

Products traded by Koch companies

Petroleum & Chemicals
Petrochemicals: paraxylene, orthoxylene, metaxylene, cumene, pseudocumene, toluene, benzene, styrene, mixed xylenes

Crude oil: Synthetic crude
Fuels: gasolines, diesels, jet fuel, residual fuels, ethanol Intermediate Feedstocks: naphtha, vacuum gasoil
Group II base lube oils

Energy
electricity, emissions, natural gas, power

Minerals & Fertilizers
Minerals: petroleum coke, coal, sulfur, pulp and paper products, magnetite, cement, salt
Fertilizer: anhydrous ammonia, Urea, UAN, potash phosphates

Financial Trading
foreign exchange, interest rates
Financially traded commodities: crude oil, refined products, crack spreads, spark spreads, ethanol, steel, base, precious & industrial metals, power, natural gas, coal, freight

Structured Products
risk management, derivatives, cross-commodity derivatives, hedging products

Metals
physical
Base metals: OTC and futures

Freight
tanker, barge, bulk, dry bulk ocean

7/2011