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14 – Property, plant and equipment

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Development of property, plant and equipment 2012 (million €)

 

Land, land rights and buildings

Machinery and technical equipment

Miscellaneous equipment and fixtures

Construction in progress

Total

Cost

 

 

 

 

 

Balance as of January 1, 2012

8,934

42,443

3,177

2,849

57,403

Changes in scope of consolidation

19

189

11

29

248

Additions

272

1,079

229

2,529

4,109

Additions from acquisitions

34

60

4

8

106

Disposals

(130)

(635)

(142)

(12)

(919)

Transfers

(47)

(855)

106

(1,963)

(2,759)

Exchange differences

(86)

(228)

(25)

(17)

(356)

Balance as of December 31, 2012

8,996

42,053

3,360

3,423

57,832

Accumulated depreciation

 

 

 

 

 

Balance as of January 1, 2012

5,068

31,753

2,591

25

39,437

Changes in scope of consolidation

11

177

7

195

Additions

289

2,205

204

152

2,850

Disposals

(92)

(583)

(135)

(1)

(811)

Transfers

(71)

(1,703)

3

(12)

(1,783)

Exchange differences

(39)

(175)

(19)

(233)

Balance as of December 31, 2012

5,166

31,674

2,651

164

39,655

Net carrying amount as of December 31, 2012

3,830

10,379

709

3,259

18,177

Additions to property, plant and equipment in 2012 amounted to €4,215 million. Additions to property, plant and equipment resulting from acquisitions totaled €106 million, primarily due to the acquisition of Novolyte in the United States and China. Further investments related especially to the construction of a TDI plant in Ludwigshafen, Germany; the construction of an MDI plant in Chongqing, China; the construction of oil and gas production facilities and wells in Europe; the expansion of the MDI plant in Antwerp, Belgium; and the purchase of a new administrative building in Florham Park, New Jersey.

The amounts recorded under transfers were primarily related to property, plant and equipment that was reclassified into the natural gas trading disposal group.

In 2012, impairments of €260 million were recognized in depreciation. A significant portion of the impairments were related to a Norwegian oil field development project.

Changes in the scope of consolidation related primarily to the first-time full consolidation of hte Aktiengesellschaft.

In 2012, BASF exercised a purchase option for a plant site in China, which led to the reversal of a previous impairment of a purchase option. This €24 million reversal is included under transfers.

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Development of property, plant and equipment 2011 (million €)

 

Land, land rights and buildings

Machinery and technical equipment

Miscellaneous equipment and fixtures

Construction in progress

Total

Cost

 

 

 

 

 

Balance as of January 1, 2011

8,793

39,849

3,045

3,045

54,732

Changes in scope of consolidation

24

57

8

18

107

Additions

112

1,000

145

1,942

3,199

Disposals

(108)

(591)

(127)

(51)

(877)

Transfers

6

1,669

79

(2,132)

(378)

Exchange differences

107

459

27

27

620

Balance as of December 31, 2011

8,934

42,443

3,177

2,849

57,403

Accumulated depreciation

 

 

 

 

 

Balance as of January 1, 2011

4,918

30,086

2,482

5

37,491

Changes in scope of consolidation

5

11

5

8

29

Additions

299

2,114

195

10

2,618

Disposals

(73)

(547)

(119)

(739)

Transfers

(125)

(238)

8

(355)

Exchange differences

44

327

20

2

393

Balance as of December 31, 2011

5,068

31,753

2,591

25

39,437

Net carrying amount as of December 31, 2011

3,866

10,690

586

2,824

17,966

Additions to property, plant and equipment in 2011 amounted to €3,199 million. Additions to property, plant and equipment resulting from acquisitions totaled €66 million, primarily from BASF’s stake in the combined heat and power (CHP) plant of Zandvliet Power N.V., Antwerp, Belgium. Further investments related particularly to: the construction of the intermodal transportation terminal in Ludwigshafen, Germany; the construction of a new oleum/sulfuric acid plant in Antwerp, Belgium; the construction of natural gas pipelines in Europe (particularly OPAL and NEL); and the construction of a production plant for methylamines in Geismar, Louisiana.

The amounts recorded under transfers were primarily related to the fertilizer activities. Property, plant and equipment belonging to the fertilizer activities were reclassified to assets of disposal groups.

In 2011, impairments of €231 million were recognized in depreciation. A significant portion of the impairments related to production facilities in the Petrochemicals division at the site in Port Arthur, Texas, as well as to property, plant and equipment in the Paper Chemicals division at a site in the United States.

Changes in the scope of consolidation related primarily to Heesung Catalysts Corporation, which was proportionally consolidated for the first time.

There were no reversals of impairments recorded in 2011.