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Koch Industries Inc. is breaking up Koch Petroleum Group LP into a refining subsidiary and a trading subsidiary to better take advantage of growth opportunities in their respective markets, the company said.
The restructuring, effective January 2002, will give birth to Flint Hills Resources LP, a refining and chemicals company, and Koch Supply & Trading, LP, a trading company.
Flint Hills Resources will be wholly owned by Koch Industries and based in Wichita. It will include the Corpus Christi, Texas, and Pine Bend, Minn. refining complexes, as well as other crude oil supply activities.
"This restructuring is designed to better enable these companies to grow and succeed." said Joe Moeller, chief executive of Koch Industries in a statement.
Dave Robertson, president of Koch Petroleum Group, will become Flint Hills Resources' president and chief executive officer. "We're excited about being better able to take advantage of growth opportunities and compete with other independent refining companies," he said.
Koch Supply & Trading will focus on global trading in crude oil and refined products. Steve Mawer, Koch Petroleum Group's executive vice president of sales and trading, will become president of Koch Supply & Trading.