Note 11: Property, plant and equipment

Investments in property, plant and equipment

Throughout 2019, we have continued to thoroughly assess all investment proposals to ensure the right capital and capacity allotment and have taken decisions accordingly. With an aim to reinforce our capability to support customers and enhance our manufacturing and supply chain, we have invested in our Changzhou powder coatings plant in China to add new production lines. Another major investment started in High Point, North Carolina, to transform our wood coatings facility into a best-in-class manufacturing site, which is expected to further strengthen our market position in the US.

As we strongly believe in the importance of innovation to keep AkzoNobel at the forefront of the paints and coatings industry, we have continued to invest in RD&I, an example of which is our investment in the innovation campus located at our Felling site in the UK.

Impairments

In 2019, impairments were recognized in Performance Coatings, following the implementation of our strategic portfolio review. In 2018, no significant impairments were recognized.

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 December 31, 2017

 

 

 

 

 

 

Cost of acquisition

1,488

1,901

925

193

7

4,514

Accumulated depreciation/impairment

(689)

(1,273)

(713)

(2)

(5)

(2,682)

Carrying value at December 31, 2017

799

628

212

191

2

1,832

Impact adoption IFRS 15

(56)

(10)

(66)

Impact application IAS 29

11

2

1

14

Balance at January 1, 2018

810

630

156

182

2

1,780

 

 

 

 

 

 

 

Movements in 2018

 

 

 

 

 

 

Acquisitions

18

4

2

1

2

27

Divestments

(7)

(1)

(2)

(1)

(11)

Investments

6

31

13

111

(1)

160

Transfer between categories

22

48

46

(116)

Depreciation

(44)

(93)

(44)

(181)

Impairments, including reversals

(1)

(1)

Changes in exchange rates

(10)

(8)

(5)

(3)

(26)

Total movements

(16)

(19)

10

(8)

1

(32)

 

 

 

 

 

 

 

Balance at December 31, 2018

 

 

 

 

 

 

Cost of acquisition

1,505

1,894

888

178

10

4,475

Accumulated depreciation/impairment

(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/impairment

(758)

(1,389)

(757)

(1)

(7)

(2,912)

Carrying value at December 31, 2019

770

585

149

192

4

1,700

R&D

Research & Development.