Note 12: Property, plant and equipment
Investments in 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 R&D 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.
Research and development.