Note 12: Property, plant and equipment

Investments in property, plant and equipment

Property, plant and equipment

In € millions

Buildings and land

Plant equipment and machinery

Other equipment

Construction in progress and prepayments on projects

Assets not used

Total

 

 

 

 

 

 

 

Balance at January 1, 2020

 

 

 

 

 

 

Cost of acquisition

1,528

1,974

906

193

11

4,612

Accumulated depreciation/impairment

(758)

(1,389)

(757)

(1)

(7)

(2,912)

Carrying value at January 1, 2020

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/impairment

(731)

(1,386)

(757)

(4)

(7)

(2,885)

Carrying value at December 31, 2020

694

551

133

240

3

1,621

 

 

 

 

 

 

 

Movements in 2021

 

 

 

 

 

 

Acquisitions

36

11

47

Divestments

(5)

(3)

(1)

(1)

(10)

Investments

10

18

8

217

253

Transfer between categories

30

112

28

(170)

Depreciation

(44)

(102)

(41)

(187)

Impairments, including reversals

(1)

(1)

Changes in exchange rates

31

29

6

11

77

Total movements

58

64

57

179

 

 

 

 

 

 

 

Balance at December 31, 2021

 

 

 

 

 

 

Cost of acquisition

1,546

2,124

919

300

10

4,899

Accumulated depreciation/impairment

(794)

(1,509)

(786)

(3)

(7)

(3,099)

Carrying value at December 31, 2021

752

615

133

297

3

1,800

We thoroughly assess all investment proposals to ensure the right capital and capacity allotment and take decisions accordingly. To reinforce our capability to support customers and enhance our manufacturing and supply chain, we have invested in our sites to support the Grow and Deliver objectives. Large investments projects are ongoing amongst others at our Highpoint, US, Wood Coatings site, and at our Como, Italy, Powder Coatings site. Further investments include the setup of a new powder coatings manufacturing line at our Hanoi, Vietnam, site, and the setup of a texture making workshop at our Shanghai site to support the Deco project business growth in China.

As we strongly believe in the importance of innovation to keep AkzoNobel at the forefront of the paints and coatings industry, we have also continued to invest in RD&I, amongst others in our Deco facility in Slough, UK. We have furthermore invested in capacity increases to support the liquid coatings to powder coatings evolution, an example of our increasing focus on sustainable solutions.

Acquisitions

On March 1, 2021, we acquired Industrias Titan S.A.U. (Titan Paints) in Spain. The acquisition strengthens our paints business and footprint in Spain.

Impairments

In 2021 and 2020, no significant impairments were recognized.

R&D

Research and development.