Note 12: Property, plant and equipment
Investments in property, plant and equipment
Throughout 2020, AkzoNobel has continued to assess all investment opportunities to ensure the right capital and capacity allotment and have taken decisions accordingly. With an aim to reinforce capability to support customers and enhance our manufacturing and supply chain, AkzoNobel has, among others, invested in the Powder Coatings site in Como, Italy, which is expected to enable further automatization and operational efficiency with automated and integrated production lines. Another major investment has been initiated in Turkey to increase the product range in decorative and wood care paints and unlock further value engineering opportunities.
We continued to invest in High Point, North Carolina, to transform our wood coatings facility into a best-in-class manufacturing site.
Impairments
In 2020, no significant impairments were recognized. In 2019, impairments were recognized in Performance Coatings, following the implementation of our strategic portfolio review.
In € millions |
Buildings and land |
Plant equipment and machinery |
Other equipment |
Construction in progress and prepayments on projects |
Assets not used |
Total |
|---|---|---|---|---|---|---|
|
|
|
|
|
|
|
Balance at December 31, 2018 |
|
|
|
|
|
|
Cost of acquisition |
1,505 |
1,894 |
888 |
178 |
10 |
4,475 |
Accumulated depreciation/ |
(711) |
(1,283) |
(722) |
(4) |
(7) |
(2,727) |
Carrying value at December 31, 2018 |
794 |
611 |
166 |
174 |
3 |
1,748 |
Impact adoption IFRS 16 |
(28) |
(1) |
— |
— |
— |
(29) |
Balance at January 1, 2019 |
766 |
610 |
166 |
174 |
3 |
1,719 |
|
|
|
|
|
|
|
Movements in 2019 |
|
|
|
|
|
|
Acquisitions |
8 |
4 |
— |
— |
— |
12 |
Divestments |
(22) |
(1) |
(10) |
— |
— |
(33) |
Investments |
6 |
24 |
13 |
136 |
— |
179 |
Transfer between categories |
44 |
57 |
19 |
(121) |
1 |
— |
Depreciation |
(43) |
(102) |
(43) |
— |
— |
(188) |
Impairments, including reversals |
(2) |
(19) |
(2) |
— |
— |
(23) |
Changes in exchange rates |
13 |
12 |
6 |
3 |
— |
34 |
Total movements |
4 |
(25) |
(17) |
18 |
1 |
(19) |
|
|
|
|
|
|
|
Balance at December 31, 2019 |
|
|
|
|
|
|
Cost of acquisition |
1,528 |
1,974 |
906 |
193 |
11 |
4,612 |
Accumulated depreciation/ |
(758) |
(1,389) |
(757) |
(1) |
(7) |
(2,912) |
Carrying value at December 31, 2019 |
770 |
585 |
149 |
192 |
4 |
1,700 |
|
|
|
|
|
|
|
Movements in 2020 |
|
|
|
|
|
|
Acquisitions |
3 |
1 |
1 |
— |
— |
5 |
Divestments |
(4) |
(1) |
(1) |
(3) |
— |
(9) |
Investments |
8 |
23 |
6 |
187 |
— |
224 |
Transfer between categories |
28 |
83 |
22 |
(133) |
— |
— |
Depreciation |
(53) |
(107) |
(38) |
— |
— |
(198) |
Impairments, including reversals |
— |
(2) |
(1) |
— |
— |
(3) |
Changes in exchange rates |
(58) |
(31) |
(5) |
(3) |
(1) |
(98) |
Total movements |
(76) |
(34) |
(16) |
48 |
(1) |
(79) |
|
|
|
|
|
|
|
Balance at December 31, 2020 |
|
|
|
|
|
|
Cost of acquisition |
1,425 |
1,937 |
890 |
244 |
10 |
4,506 |
Accumulated depreciation/ |
(731) |
(1,386) |
(757) |
(4) |
(7) |
(2,885) |
Carrying value at December 31, 2020 |
694 |
551 |
133 |
240 |
3 |
1,621 |