After capital expenditure had been considerably reduced in the previous year due to the slump in demand, expenditure for intangible assets and property, plant and equipment rose again in 2011. We particularly pressed on with projects which had been postponed due to the crisis.
In 2011, investments totalled €93.5 million (past year: €73.8 million). €73.8 million of this amount was invested in property, plant and equipment, and €11.6 million in intangible assets. As in the previous years, ALTANA invested by far the largest share in German companies.
The Additives & Instruments division invested €45.5 million in the past business year (past year: €26.1 million). The most important projects were the construction of a laboratory building to expand capacities in research and development at the division’s main site in Wesel and the acquisition of a production facility for alkoxylates in Antwerp.
At €21.5 million (past year: €28.9 million) capital expenditure of the Effect Pigments division accounted for the largest share in the Group’s investments. The high value creation of the activities in the manufacturing of effect pigments goes hand in hand with higher capital intensity. The most important investment project by far in 2010 involved the expansion of paste production capacities due to the shift of production from Italy, where it had been terminated in past year, to the division’s main site in Güntersthal.
The investment levels of the Electrical Insulation and Coatings & Sealants divisions were much lower due to their different production structures. In the business year 2011, Electrical Insulation invested €17.7 million (past year: €12.5 million) and Coatings & Sealants invested € 7.8 million (past year: €6.1 million).