Integrated
Report 2022

17. Property, plant and equipment

Property, plant and equipment 31.12.2021 Increases Decreases Shifts Currency translation differences 31.12.2022
Gross value 2,681,629 356,923 (46,551) 0 275 2,992,276
Land 31,673 0 0 550 129 32,352
Buildings and structures 773,215 0 (3,732) 52,145 45 821,673
Plant and machinery 1,374,902 0 (17,256) 111,544 38 1,469,228
Means of transport 67,848 0 (6,126) 17,651 7 79,380
Other property, plant and equipment 378,080 0 (19,423) 56,176 56 414,889
Property, plant and equipment under construction 55,911 356,923 (14) (238,066) 0 174,754
Amortisation (1,200,301) (155,603) 40,997 0 (33) (1,314,940)
Buildings and structures (185,339) (23,876) 3,732 0 (7) (205,490)
Plant and machinery (703,503) (79,723) 13,752 0 (7) (769,481)
Means of transport (39,770) (8,036) 4,165 0 (2) (43,643)
Other property, plant and equipment (271,689) (43,968) 19,348 0 (17) (296,326)
Write-downs (20,403) (11,426) 2,394 0 0 (29,435)
Buildings and structures (6,564) (3,479) 609 0 0 (9,434)
Buildings and structures (12,371) (5,162) 470 0 0 (17,063)
Means of transport 0 (119) 25 0 0 (94)
Other property, plant and equipment (1,468) (2,666) 1,290 0 0 (2,844)
Net value 1,460,925 189,894 (3,160) 0 242 1,647,901
Land 31,673 0 0 550 129 32,352
Buildings and structures 581,312 (27,355) 609 52,145 38 606,749
Plant and machinery 659,028 (84,885) (3,034) 111,544 31 682,684
Means of transport 28,078 (8,155) (1,936) 17,651 5 35,643
Other property, plant and equipment 104,923 (46,634) 1,215 56,176 39 115,719
Property, plant and equipment under construction 55,911 356,923 (14) (238,066) 0 174,754

Property, plant and equipment 31.12.2020 Increases Decreases Shifts Currency translation differences 31.12.2021
Gross value 2,551,429 156,292 (29,684) 0 3,592 2,681,629
Land 30,433 0 0 1,287 (47) 31,673
Buildings and structures 733,513 0 (3,578) 42,358 922 773,215
Plant and machinery 1,346,671 0 (12,040) 38,277 1,994 1,374,902
Means of transport 62,974 0 (3,831) 8,524 181 67,848
Other property, plant and equipment 330,790 0 (9,721) 56,468 543 378,080
Property, plant and equipment under construction 47,048 156,292 (514) (146,914) (1) 55,911
Amortisation (1,080,725) (144,925) 26,997 0 (1,648) (1,200,301)
Buildings and structures (165,642) (21,363) 2,255 0 (589) (185,339)
Plant and machinery (638,541) (76,393) 12,027 0 (596) (703,503)
Means of transport (34,778) (7,870) 2,976 0 (98) (39,770)
Other property, plant and equipment (241,764) (39,299) 9,739 0 (365) (271,689)
Write-downs  (19,515)  (1,381)  493  0  0  (20,403)
Buildings and structures  (6,865)  (17)  318 0 0  (6,564)
Buildings and structures  (12,349)  (66)  44 0 0  (12,371)
Means of transport  0  (40)  40 0 0  0
Other property, plant and equipment  (301)  (1,258)  91 0 0  (1,468)
Net value  1,451,189  9,986  (2,194)  0  1,944  1,460,925
Land  30,433  0  0  1,287  (47)  31,673
Buildings and structures  561,006  (21,380)  (1,005)  42,358  333  581,312
Plant and machinery  695,781  (76,459)  31  38,277  1,398  659,028
Means of transport  28,196  (7,910)  (815)  8,524  83  28,078
Other property, plant and equipment  88,725  (40,557)  109  56,468  178  104,923
Property, plant and equipment under construction  47,048  156,292  (514)  (146,914)  (1)  55,911

The gross value increase item covers acquisitions, whereas the amortisation increase item refers to depreciation of the particular groups of property, plant and equipment. The shift item presents values of property, plant and equipment put into use in the reporting period.

Changes of estimates concerning useful lives, and the capitalisation of finance costs

In the presented periods, the Group did not make any significant changes in the useful lives of property, plant and equipment, except for Romb S.A. (the Aluminium Systems Segment), which shortened the useful life of the electroplating shop in 2022, and that resulted in PLN 4 million higher depreciation charges. Write-downs and liquidation of property, plant and equipment resulted mainly from their sale, or faster-than-expected wear and tear as compared to their useful lives

2022 2021
Net value of liquidated property, plant and equipment 2,687 2,194

The Group capitalises interest related to financing of the adjustment to the Group needs of the acquired property, plant and equipment.

2022 2021
Interest charged to property, plant and equipment 7,530 441

Restrictions on the disposal of property, plant and equipment

31.12.2022 31.12.2021
Registered pledge on property, plant and equipment; group of plant and machinery 183,000 57,000
Mortgage on land, buildings and structures 617,596 517,000
Total value of property, plant and equipment securing loans* 800,595 574,000
Total value of restricted property, plant and equipment 800,595 574,000
*The information on loans secured with property, plant and equipment is available in note 29.

Contractual liabilities

By operating segments 31.12.2022 31.12.2021
Extruded Products Segment 72,434 91,804
Flexible Packaging Segment 12,871 11,461
Aluminium Systems Segment 26,558 54,378
Central units 1,076 8
Total 112,939 157,651

At the end of the current year, the major items of the said liabilities were related to:

  • construction of a production hall and purchase of presses at the Extruded Products Segment;
  • construction of a new production and warehouse hall at the Aluminium Systems Segment.

Impairment losses

The companies within the particular operating segments are cash-generating units for impairment tests (details of the companies of the Group and their business segments are included in note 4). In 2022 the Group carried out impairment tests of property, plant and equipment, as there were indicators of impairment identified. However, the tests did not reflect any impairment – detailed information about the tests has been provided in note 13.9. Moreover, in 2022 the Group carried out impairment tests for the property, plant and equipment of the companies located in Ukraine. As described in note 5.2, in 2022 the Group recognised PLN 9,215,000 write-downs of property, plant and equipment of the companies located in Ukraine. In 2021 the Group did not carry out impairment tests, as there were no indicators of impairment. The other recognised impairment losses are related to individual assessment of the usefulness of the particular items of property, plant and equipment and the possibility of generating positive net cash flows by them. In 2021 the Group did not carry out impairment tests, as there were no indicators of impairment.