18 FERTILIZER FOCUS MAY/JUNE 2011 FEATURE KOCH FERTILIZER For Koch Fertilizer, LLC (KF), growing a business requires the same basic approach as used on the farm – nourish, replenish, grow. Nourish the business with efficient assets, products, and distribution. Replenish by continuous investments and commitments that will create additional value for customers. Grow the business through expanding operations, global reach, and product portfolio. Koch Fertilizer continues making strategic investments to broaden and diversify its scope of products and offering a cost-effective distribution network to serve its growing global customer base. A GROWING FORCE ON WORLD FERTILIZER MARKETS For nearly 10 years, KF and its subsidiaries have steadily purchased, leased, upgraded and expanded its fertilizer manufacturing, supply and distribution capabilities worldwide. Building out from a strong position in North America – a position that was enhanced significantly by the purchase in 2003 of Farmland’s nitrogen fertilizer business – KF has become a far-reaching provider of fertilizer products to markets around the world. For example, beginning in 2007, the company developed deepwater terminals and expanded operations in Sète, France; Avonmouth, U.K.; Paranagua, Brazil; Geelong and Brisbane, Australia; Topolobampo, Mexico; and Wilmington, N.C. and Charleston, S.C., U.S.A. During the past four years, KF has increased its customer base from 400 to more than 10,000 globally, and its marketing and logistics capability has grown exponentially. MAJOR RECENT DEVELOPMENTS IN UK Earlier this year, in one of its most significant recent actions, KF acquired the United Kingdom-based fertilizer blender and distributor J&H Bunn Limited. This acquisition included seven terminals strategically located throughout the U.K. Another area of focus for KF is to bring enhanced efficiency fertilizer Koch Fertilizer refers to Koch Fertilizer, LLC, and its affiliates. Koch Fertilizer, LLC, and its affiliates own or have interests in nitrogen fertilizer plants in the United States, Canada, and Trinidad and Tobago. The companies cover global demand through state-of-the-art terminals in the U.S., Canada, Mexico, Australia, France and the United Kingdom. Koch Fertilizer, LLC, and its affiliates - including Koch Nitrogen Company, LLC, and Koch Fertilizer Canada ULC - have the capability to manufacture, market and distribute more than 13 million tonnes of fertilizer products annually. Koch Fertilizer, LLC, is an indirect, wholly owned subsidiary of Koch Industries, Inc., one of the largest private companies in America. www.kochfertilizer.com. Nitamin ® and Nitamin NFusion ® are trademarks of Koch Agronomic Services, LLC. Koch Advanced Nitrogen ™ and K a N ® are trademarks of Koch Fertilizer, LLC. Koch Fertilizer has a long-term agreement to store dry fertilizer product at the Cape Fear River facility (above) at Wilmington, North Carolina, USA. The Expanding Footprint of Koch Fertilizer
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18 FERTILIZER FOCUS MAY/JUNE 2011
FEATURE KOCH FERTILIZER
For Koch Fertilizer, LLC (KF), growing a business requires the samebasic approach as used on the farm – nourish, replenish, grow. Nourishthe business with efficient assets, products, and distribution. Replenishby continuous investments and commitments that will create additionalvalue for customers. Grow the business through expanding operations,global reach, and product portfolio. Koch Fertilizer continues makingstrategic investments to broaden and diversify its scope of products andoffering a cost-effective distribution network to serve its growing globalcustomer base.
A GROWING FORCE ON WORLD FERTILIZER MARKETS
For nearly 10 years, KF and its subsidiaries have steadily purchased,leased, upgraded and expanded its fertilizer manufacturing, supply anddistribution capabilities worldwide. Building out from a strong position inNorth America – a position that was enhanced significantly by thepurchase in 2003 of Farmland’s nitrogen fertilizer business – KF has
become a far-reaching provider of fertilizer products to markets aroundthe world.
For example, beginning in 2007, the company developed deepwaterterminals and expanded operations in Sète, France; Avonmouth, U.K.;Paranagua, Brazil; Geelong and Brisbane, Australia; Topolobampo,Mexico; and Wilmington, N.C. and Charleston, S.C., U.S.A. During thepast four years, KF has increased its customer base from 400 to morethan 10,000 globally, and its marketing and logistics capability has grownexponentially.
MAJOR RECENT DEVELOPMENTS IN UK
Earlier this year, in one of its most significant recent actions, KFacquired the United Kingdom-based fertilizer blender and distributor J&HBunn Limited. This acquisition included seven terminals strategicallylocated throughout the U.K.
Another area of focus for KF is to bring enhanced efficiency fertilizer
Koch Fertilizer refers to Koch Fertilizer, LLC, and its affiliates. Koch Fertilizer, LLC, and its affiliates own or have interests in nitrogen fertilizerplants in the United States, Canada, and Trinidad and Tobago. The companies cover global demand through state-of-the-art terminals in theU.S., Canada, Mexico, Australia, France and the United Kingdom. Koch Fertilizer, LLC, and its affiliates - including Koch Nitrogen Company,LLC, and Koch Fertilizer Canada ULC - have the capability to manufacture, market and distribute more than 13 million tonnes of fertilizerproducts annually. Koch Fertilizer, LLC, is an indirect, wholly owned subsidiary of Koch Industries, Inc., one of the largest private companiesin America. www.kochfertilizer.com.
Nitamin® and Nitamin NFusion® are trademarks of Koch Agronomic Services, LLC. Koch Advanced Nitrogen™ and KaN® are trademarksof Koch Fertilizer, LLC.
Koch Fertilizer has a long-term agreement to store dry fertilizer product at the Cape Fear River facility (above)at Wilmington, North Carolina, USA.
The Expanding Footprintof Koch Fertilizer
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products to global customers. In 2010, KF introduced KaN® fertilizer,the Koch Advanced Nitrogen™ product that utilizes AGROTAIN®
fertilizer additive, in the United Kingdom. Following that introduction,Koch Agronomic Services, LLC, was created to market enhancedefficiency fertilizers, including Nitamin® and Nitamin Nfusion® slow-release foliar- and soil-applied nitrogen.
“We’re adding these new assets and capabilities, including anagronomic capability we’ve not had in the past. In addition, we’regrowing our portfolio to include high-performance products and servicesthat will create additional value for growers,” said Steve Packebush,President of Koch Fertilizer. “Traditionally, Koch Fertilizer has been acommodity-based fertilizer producer, marketer, distributer andmerchandiser. Now, we are expanding our footprint by also offeringefficient crop fertilizer solutions and additional value to growers looking tomaximize their return on crop inputs.”
BULLISH PRODUCTION TARGET ESTABLISHED
With its affiliates, KF is expected, in 2011, to manufacture, market anddistribute more than 13 million tonnes of various nitrogen, phosphate,potash, and sulphur-based products, in addition to a variety of enhancedefficiency fertilizer products.
Koch Fertilizer, LLC, is a subsidiary of Koch Industries, Inc., a privatelyowned company which operates across diverse industry areas: refiningand chemicals; process and pollution control equipment andtechnologies; minerals and fertilizers; polymers and fibres; forest andconsumer products; commodities trading and services; and ranching.Koch companies enter into an industry with a long-term, customer-focused outlook of growing the market and creating additional value forits customers through increased efficiency, advanced technology, in-depth market knowledge and risk management services.
Creating value in the global marketplace
Koch Fertilizer, LLC and our affiliates are expanding terminal capacity and our fertilizer product offering to create one of the world’s largest and most diverse supply, storage and distribution systems of fertilizer products.
Koch Fertilizer, LLC is focused on lowering costs, managing risk, and improving efficiency for suppliers and customers around the globe.
1.800.325.5184 | www.kochfertilizer.comThe Koch logo is a trademark of Koch Industries, Inc.
J&H Bunn Limited, the largest independent fertilizer supplier inthe U.K., was acquired by Koch Fertiliser, Ltd., a subsidiary ofKF, in March 2011. J&H Bunn, founded in 1816, has a longhistory of serving the U.K.-based fertilizer market with anextensive product mix that includes a combination of straightfertilizer grades as well as custom blended grades. In theacquisition, Bunn-related brand names will be retained, andBunn will have access to KF’s portfolio of fertilizer products.
Bunn’s operations are comprised of seven terminalsthroughout the United Kingdom, with approximately 95 percentof the U.K.’s arable area within 100 miles of J&H Bunn’s port-related facilities. Combining Bunn’s custom blending andagronomic capability with KF’s global sourcing and productioncapability will benefit customers by providing complimentarystrengths that will bring additional value to J&H Bunncustomers.❒
Benefits Koch Fertilizer Brings to the Marketplace
Customer Benefits• Risk Management Services• Assured Supply of Product• Flexibility in Logistics and Shipping• Commodity and Value-added Specialty Products
Supplier Benefits• Year Round Access to Global Customer Base• Strong Financial Counterparty• Global Market Coverage
Bunn’s fertilizerawaiting dispatch.
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FEATURE KOCH FERTILIZER
RAPID FERTILIZER SECTOR GROWTH THROUGHACQUISITION AND ORGANIC GROWTH
Koch first acquired interests in the fertilizer industry in 1988, throughthe purchase of the Gulf Central Pipeline and associated ammoniaterminals in the Cornbelt of the United States. In 1989, Koch NitrogenCompany was formed to market ammonia. Throughout the next decade,
the business continued to invest and expand its production assets andterminals in North America and the Caribbean. Within North America andthe Caribbean, KF now owns or has investments in eight productionplants and owns and/or leases 47 terminals.
GLOBAL DISTRIBUTION SYSTEM OF KEY IMPORTANCE
Around 2006, the focus for KF grew to include distribution on aninternational level. Koch Fertilizer now owns or leases more than 90terminals in locations situated throughout the world, from which thecompanhy markets a wide-array of products, including ammonia, urea,UAN solution, nitrates, ammonium sulphate, phosphates, potash,compound fertilizers and bulk blends.
In 2008, the business acquired the Usborne Fertiliser Limitedbusiness, a U.K.-based fertilizer import and marketing firm. The followingyear, supply and marketing offices in Marlborough, U.K. and Singaporewere opened. Dry bulk terminals on the west coast of Mexico, insouthern France and the U.K were also developed. In addition, KFentered into an offtake agreement for urea from Oman and is developingdry bulk terminals in Paranagua, Brazil.
“Having terminal positions in ports around the globe allows ourbusiness to offer market alternatives for suppliers of all types of fertilizerand provide customers access to low-cost products and services. Wehave the capability to handle large and small vessel shipments andprovide diverse products to agricultural and industrial customers in a
Koch Agronomic Services
Koch Agronomic Services, LLC, a newly formed subsidiary ofKF, was created with the vision of bringing enhanced efficiencyfertilizers and value-added technologies to the marketplace. Theagronomic services platform is investing in a range of enhancedefficiency fertilizer technologies that can improve nutrientefficiency and boost yields, while reducing nutrient loss andprotecting the environment.
Koch Agronomic Services currently markets Nitamin® andNitamin Nfusion® slow-release foliar- and soil-applied nitrogen,which provide growers and turf professionals with safe andefficient slow-release nitrogen fertilizer. Other high-performanceproducts available include KaN® fertilizer, which reducesvolatilization losses from urea.❒
The Locations of the Major Koch Fertilizers Worldwide Operations
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broad number of global locations,” said Packebush. “We believe ourterminal distribution system is one of the largest and most diverse of itskind in the world.”
TRANSITION TO AGRONOMICS SOLUTIONS PROVIDER
With its efficient, low-cost distribution framework growing to meetglobal demand, KF began placing increased emphasis on providingvalue-added fertilizer products in markets across the globe. KochFertilizer’s commitment to grow its comprehensive portfolio of agronomicsolutions drove the formation of Koch Agronomic Services, LLC, to
market enhanced efficiency fertilizers.“Having access to demand points year-round has been a priority for
us. Our focus remains on creating value through a cost-effective supplyand distribution network that serves and benefits our customers andsuppliers,” Packebush said. “We have now expanded from acommodity-based producer and marketer to an agronomics solutionsprovider with a global footprint.”
With long-term fertilizer demand growing, KF continues to look fornew opportunities to nourish, replenish and grow its business to createvalue for its customers and suppliers, and meet the diverse and growingdemands on fertilizer.■
