OK: Koch Nitrogen to Invest $1B, Build Urea Plant, Increase Production

Koch Nitrogen Company, LLC is moving forward with plans to build a new urea plant at its Enid, Oklahoma facility. In addition, the company is revamping existing production processes at the facility. Combined, the investments are estimated at $1 billion and are expected to increase fertilizer production at the facility by more than 1 million tons per year. The improvements to existing processes will be implemented in stages from 2014-2016. Construction on the new plant, which will include additional storage and enhanced loading facilities, is expected to begin in the fourth quarter of 2014. The plant is projected to be operational in 2016.

"The investment we are making through Koch Nitrogen underscores our confidence in the future of our overall fertilizer business and our commitment to customers for the long-term," said David Robertson, president and chief operating officer of Koch Industries, Inc. "In addition to the significant increase in capacity, this investment will serve to improve our operational efficiency and competitive position in North America."

"We are pleased Koch Industries is once again expanding its presence with a new investment in Oklahoma," said Oklahoma Governor Mary Fallin, "Koch is well acquainted with our favorable business climate, with three separate companies already operating in the state, employing nearly 1,800 Oklahomans and generating more than $146 million in annual compensation and benefits for our economy. This substantial investment in Enid by Koch Nitrogen to build a new ultra-modern fertilizer production plant is further proof that our commitment to keeping business taxes low and regulations reasonable is paying dividends in the form of quality jobs for our state."

Governor Fallin also congratulated officials with the city of Enid and Garfield Country and referred to the plans as a model of public and private cooperation.

"We are thrilled with Koch Nitrogen’s investment plans," said Eric Benson, Enid City Manager. "They are an excellent corporate citizen and outstanding community partner. They have worked closely with us to address the pressing needs of our community, including recent efforts to find a solution for our community’s water situation. Koch’s expanded presence in Enid will resonate positively throughout our economy for a long time."

Koch Nitrogen has selected the following companies for the project:

• Black & Veatch, a global engineering, consulting and construction company, will provide project planning, engineering and procurement services.
• KBR, a global engineering, construction and services company, will provide urea engineering and procurement services.
• Stamicarbon, the global market leader in licensing of urea technology and services, will provide urea synthesis and granulation technology.

"As crop production increases throughout North America, we are seeing an increasing demand for fertilizer from our customers," said Steve Packebush, president of Koch Fertilizer, LLC. "With this additional production, we’ll be in a much better position to meet that demand. We look forward to breaking ground on this project, while continuing to evaluate enhancements at our four other North American facilities."

Economic Impact
The positive economic impact to the city of Enid and surrounding communities over the next three years will be substantial. During the 18-24 months of construction, 500 to 800 new construction jobs are projected to be created. In addition, a total of 20-30 permanent employees will ultimately be added to support the new plant.

Enid Facility
The Koch Nitrogen facility in Enid is one of the largest fertilizer production plants in North America, producing ammonia, UAN (liquid fertilizer) and granular urea. It was built in 1974 and purchased by Koch Nitrogen in 2003. The site employs 143 people in the fields of engineering, operations and maintenance with annual compensation and benefits totaling nearly $14 million. In the last five years, Koch Nitrogen has invested more than $100 million into the Enid facility, including the construction of a 10,000-square-foot control facility in 2011, which improved operational reliability and overall plant efficiency.

Operations Excellence
At the facility in Enid and at all Koch Nitrogen facilities, employees are committed to a safe work environment and strive to manage operations in a manner that protects the health and safety of employees, customers, contractors, the public and the environment. The fertilizer industry is highly regulated and Koch works with numerous federal, state and local regulatory agencies to attain compliance with all laws and regulations at all times. At the federal level, those agencies include the U.S. Occupational Safety & Health Administration, the Environmental Protection Agency, the Department of Homeland Security and the U.S. Department of Transportation. At the state level, Koch works with the departments responsible for environmental quality and natural resources as well as the Department of Agriculture. Koch also meets periodically with Local Emergency Planning Committees to discuss hazardous materials safety and appropriate responses to emergency events.

Koch Fertilizer, LLC and its subsidiaries 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, Brazil, 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 market and distribute more than 13 million tons 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.

About Koch Industries, Inc. Based in Wichita, Kan., Koch Industries, Inc. is one of the largest private companies in America with annual revenues of about $115 billion. It owns a diverse group of companies involved in refining, chemicals and biofuels; forest and consumer products; fertilizers; polymers and fibers; process and pollution control equipment and technologies; minerals; commodity trading and services; ranching; and investments. Since 2003, Koch companies have invested about $50 billion in acquisitions and other capital expenditures. With a presence in nearly 60 countries, Koch companies employ about 60,000 people worldwide. In 2012, Koch companies employed nearly 50,000 people in the United States and paid compensation and benefits totaling more than $4 billion. From January 2009 to present, Koch companies earned more than 570 awards for safety, environmental excellence, community stewardship, innovation, and customer service.