a motivated philanthropist - pvc film manufacturers
Huntsman has created a wealth by acquiring assets of non-performing chemicals at low prices.
Turned at the 2001 table.
Both he and his empire are in trouble.
Now, just a year and a half later, Huntsman has gone through his difficulties and maintained the company he established as the world's largest private chemicals company.
Actually, there are two companies in Huntsman.
S one, which produces bulk chemicals such as polypropylene, and his international business
Special chemicals such as polyurethane and titanium dioxide.
Until two years ago, the two factories were still making money, when domestic factories were squeezed between low product prices and rising raw material prices.
When the company defaulted on interest on junk bonds in January 2001, every Huntman consultant urged him to put his creations in Chapter 11 to save some of his investments. If you can't control
Huntsman flatly refused.
He made the right decision. -
Not only did he not be forced into bankruptcy, but he retained 51% of corporate control on the road to a strong economic recovery.
Huntsman faced another hard battle a long time ago. -cancer.
He has prostate cancer and oral cancer, and the third disease, colon cancer, threatens him in the form of a pre-cancerous polyp.
His answer: The Huntsman Cancer Institute in Salt Lake City, founded in 1995, invested $0. 225 billion.
Its mission is to study the genetic basis of cancer and to treat patients.
Huntsman, 65, started his Salt Lake City.
A private company based in 1970.
He had no choice but to build it with great leverage ---revenue of $8.
5 billion in 2000, it cleared Operating income globally (
Net before depreciation, interest and taxes)of $1. 2 billion.
This is enough to cover the company's debts and capital expenditures.
But when the bottom exits from AmericaS.
Last year, operating income from the petrochemical business fell by more than half to $0. 485 billion.
The company took $0. 511 billion.
The cost of time restructuring led to a loss of $0. 123 billion in 2001.
Why not as suggested by his consultant?
In this way, bankruptcy forced creditors to cut their hair.
Thomas Cole said that all Huntsman acquisitions of senior vice president Deutsche Bank and financing participants since 1988: "Huntsman, bankruptcy is shameful.
Huntsman is not the same as any businessman I know.
"So Huntsman had to revise the grand plan he had in his life ---
Pass on a thriving private company to his nine children, all of whom had worked in the company and owned the company's third child together.
Avoid bankruptcy of the company (and take $1.
1 billion of his debt)
Huntsman handed over a 49% stake to an investment fund that bought 82% of the company's junk bonds at a low price.
By David in horse Thelin (David Matlin) management of fund
Please read the relevant story. 337)
In five years or less, you will naturally want to withdraw from the investment.
This means either getting the chemical company listed or selling it to another chemical giant.
The financial predicament occurred suddenly in 2001.
During the year, the price of natural gas was a key raw material for Huntsman's American gas. S.
Plants, soaring from $2.
$50 to $10 per million Btu.
Btu 50 per million
Jumped to the United States. S.
Petrochemical industry from one of the lowest-
One of the world's most expensive manufacturers.
Unfortunately, at the same time, the new United StatesS.
The production capacity comes from BASF and Fina Elf in Germany, as well as Taiwan Plastics.
The strength of the United States. S.
The dollar at that time increased the export capacity of the industry.
These factors have now eased.
The dollar fell against the euro and prices of key chemicals rose, but even before, Huntsman made sure that his financial problems had no effect on the Cancer Institute.
At the end of 2000, in 2001, Huntsman borrowed his real estate and other personal assets and offered $40 million a year to fulfill his commitment to HCI, as well as other charities.
He had to borrow money because his bank refused to allow him to take any money from his business.
His relationship with cancer has long beenstanding.
His mother died of breast cancer in 1969 and his father died of prostate cancer in 1990.
He was diagnosed with prostate cancer in 1991.
He visited all the famous cancer centers in Texas. D.
From Dana Farber in Boston to Duke University in North Carolina.
Despite his contacts and contacts, his experience of dealing with the disease made him feel powerless.
"The whole process is frustrating," he said . "
One of his ideas for the Huntsman Cancer Institute is to use the data generated by the Mormon Genealogy Department, as well as hospital records and national death certificates in the six surrounding states to find clues about cancer susceptibility in DNA.
Huntsman recruited doctors and scientists from all over the world, not only paid them well, but also planned to reward them for their findings.
The bonus will come from a cash and equity portfolio of a biotechnology company established by Huntsman in 1999, which commercializes research from the Cancer Research Institute laboratory.
Then there is the treatment aspect of the charity.
Huntsman saw that from top doctors to car park attendants, everyone at the Institute was trained to be patient-friendly.
The entire floor of six people.
The story building is dedicated to cancer education and is open to anyone who walks into the door;
Another place overlooking the picturesque Wasatch mountains of the Rocky Mountains is the treated patient, and most importantly the affordable food health-Food restaurant. A 100-
A bed hospital near the institute is under construction.
Huntsman's business survived and will be sold or listed sooner or later, which will certainly benefit HCI.
With the rise in chemical prices, Huntsman
In the most recent quarter, the company's business has fallen by $0. 229 billion (
Estimated operating profit of at least $1 billion this year).
We think Hong Bopei's net worth is $2. 5 billion.
This means that when Huntsman makes money, his children will not be very poor and they can start over from this or another business.
Huntsman's son set a precedent. in-
The 38-year-old law, Richard Durham, owns one-third stake (his father-in-law, the rest)
Manufacturing of polyethylene and PVC film in hensmay packaging operation.
Two years ago, Huntsman sold it with part of his $0. 35 billion gain from the Cancer Institute.
Durham will use part of his stake in a new family-independent business.
When the rest is sold, Huntsman knows exactly how he will use the proceeds: he will launch the acquisition fund, acquire distressed manufacturing assets and introduce external partners.
He will give some money to his biotech company.
But so far, most of the money will be spent on donations from the Institute.
"Jon's motivation has certainly changed over time," said Cole, a banker . ".
"He told me the other day: I don't want to be remembered for owning a chemical company.
I want to be remembered for doing something to cure cancer. -
It really makes sense to do so.