Koch Industries has pulled out of the Iowa, Texas, and Nebraska markets after losing the support of several industry groups.
The company announced Tuesday that it will cease operations in those states in 2019.
The move was made after the Iowa and Texas economies have struggled for years due to rising costs of energy and a lack of qualified and qualified workers.
The announcement comes on the heels of the resignation of former CEO and chairman and the recent hiring of a new CEO, who is from Texas.
A spokesperson for Koch Industries said in a statement that the company will focus on its core businesses in Iowa and Minnesota.
The spokesperson said Koch Industries was looking to grow its operations in the states to ensure its long-term success.
The announcement comes after the company announced earlier this year that it would be laying off more than 200 employees across the country.
In February, the company also announced it was pulling out of several states, including Iowa and North Dakota.
According to the American Legislative Exchange Council, the American Petroleum Institute and other oil and gas industry groups were among those who had lobbied the company to drop its plans.
In a statement to Newsweek, a spokesperson for the Koch Companies said, “We’re disappointed that our customers and communities in Iowa have not found the right balance between the needs of our communities and the needs to grow our business.”
The statement added that the Koch Industries team is working hard to find a path forward.
A spokesperson for Iowa Gov.
Terry Branstad also issued a statement saying that “Koch is making a strategic decision to stay out of Iowa, and we thank them for that.
I look forward to seeing them continue to work to expand the economy in Iowa.”