17. Property, plant and equipment
| Property, plant and equipment | 31.12.2022 | Increases | Decreases | Shifts | Currency translation differences |
31.12.2023 |
|---|---|---|---|---|---|---|
| Gross value | 2,992,276 | 359,223 | (63,901) | 0 | (14,130) | 3,273,468 |
| Land | 32,352 | 0 | 0 | 0 | (764) | 31,588 |
| Buildings and structures | 821,673 | 0 | (1,612) | 102,775 | (3,117) | 919,719 |
| Plant and machinery | 1,469,228 | 0 | (17,256) | 161,873 | (8,284) | 1,605,561 |
| Means of transport | 79,380 | 0 | (6,126) | 17,933 | (532) | 90,655 |
| Other property, plant and equipment | 414,889 | 0 | (38,893) | 63,658 | (1,433) | 438,221 |
| Property, plant and equipment under construction | 17, 754 | 359,223 | (14) | (346,239) | 0 | 187,724 |
| Amortisation | (1,314,940) | (169,872) | 59,857 | 0 | 6,869 | (1,418,086) |
| Buildings and structures | (205,490) | (19,871) | 1,612 | 0 | 135 | (223,614) |
| Plant and machinery | (769,481) | (88,050) | 17,256 | 0 | 5,516 | (834,759) |
| Means of transport | (43,643) | (8,871) | 2,096 | 0 | 364 | (50,054) |
| Other property, plant and equipment | (296,326) | (53,080) | 38,893 | 0 | 854 | (309,659) |
| Write-downs | (29,435) | (3,875) | 3,165 | 0 | 3,059 | (27,086) |
| Buildings and structures | (9,434) | (1,616) | 778 | 0 | 1,866 | (8,406) |
| Plant and machinery | (17,063) | (1,003) | 441 | 0 | 1,178 | (16,447) |
| Means of transport | (94) | (242) | 132 | 0 | 4 | (200) |
| Other property, plant and equipment | (2,844) | (1,014) | 1,814 | 0 | 11 | (2,033) |
| Net value | 1,647,901 | 185,476 | (879) | 0 | (4,202) | 1,828,296 |
| Land | 32,352 | 0 | 0 | 0 | (764) | 31,588 |
| Buildings and structures | 606,749 | (21,487) | 778 | 102,775 | (1,116) | 687,699 |
| Plant and machinery | 682,684 | (89,053) | 441 | 161,873 | (1,590) | 754,355 |
| Means of transport | 35,643 | (9,113) | (3,898) | 17,933 | (164) | 40,401 |
| Other property, plant and equipment | 115,719 | (54,094) | 1,814 | 63,658 | (568) | 126,529 |
| Property, plant and equipment under construction | 174,754 | 359,223 | (14) | (346,239) | 0 | 187,724 |
| Property, plant and equipment | 31.12.2021 | Increases | Decreases | Shifts | Currency translation differences |
31.12.2022 |
|---|---|---|---|---|---|---|
| Gross value | 2,681,629 | 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) | 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) |
| Plant and machinery | (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 |
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.
| 2023 | 2022 | |
|---|---|---|
| Net value of liquidated property, plant and equipment | 879 | 2,687 |
The Group capitalises interest related to financing of the adjustment to the Group needs of the acquired property, plant and equipment.
| 2023 | 2022 | |
|---|---|---|
| Interest charged to property, plant and equipment | 11,332 | 7,530 |
Restrictions on the disposal of property, plant and equipment
| 31.12.2023 | 31.12.2022 | |
| Registered pledge on property, plant and equipment; group of plant and machinery | 200,778 | 183,000 |
| Mortgage on land, buildings and structures | 695,088 | 617,596 |
| Total value of property, plant and equipment securing loans* | 895,866 | 800,596 |
| Total value of restricted property, plant and equipment | 895,866 | 800,596 |
Contractual liabilities
| By operating segments | 31.12.2023 | 31.12.2022 |
|---|---|---|
| Extruded Products Segment | 48,106 | 72,434 |
| Flexible Packaging Segment | 1,679 | 12,871 |
| Aluminium Systems Segment | 18,640 | 26,558 |
| Central units | 0 | 1,076 |
| Total | 68,425 | 112,939 |
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 2023 the Group did not carry out impairment tests of property, plant and equipment, as there were no indicators of impairment. 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.
The write-downs for impairment of property, plant and equipment reversed in 2023 resulted from the disappearance of impairment indicators.
The write-downs of property, plant and equipment recognised in 2023, amounting to PLN 3,875,000 resulted from individual assessment of the impairment of the particular assets. Reversal of write-downs of property, plant and equipment in 2023 in the amount of PLN 3,165,000 resulted from the liquidation of the assets covered with the write-downs.
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, the Group recognised PLN 9,215,000 write-downs of property, plant and equipment of the companies.