18. Property, plant and equipment
Development
Property, plant and equipment developed as follows:
2025 |
Land and buildings |
Technical equipment and machinery, factory and office equipment |
Down payments and assets under construction |
Total |
||
|---|---|---|---|---|---|---|
Cost |
|
|
|
|
||
As at 01/01/2025 |
1,270,107 |
5,020,698 |
141,817 |
6,432,622 |
||
|
|
|
|
|
||
Currency translation adjustment |
(77,872) |
(252,776) |
(5,542) |
(336,190) |
||
Reclassification right of use assets |
0 |
3,637 |
0 |
3,637 |
||
Addition |
3,285 |
65,455 |
54,383 |
123,123 |
||
Disposals |
(338) |
(7,497) |
0 |
(7,835) |
||
Reclassifications |
10,817 |
70,092 |
(80,909) |
0 |
||
As at 31/12/2025 |
1,205,999 |
4,899,609 |
109,7501 |
6,215,357 |
||
|
|
|
|
|
||
Accumulated depreciation |
|
|
|
|
||
As at 01/01/2025 |
(548,073) |
(2,987,479) |
(26,139) |
(3,561,691) |
||
|
|
|
|
|
||
Currency translation adjustment |
25,507 |
105,009 |
3,041 |
133,556 |
||
Reclassification right of use assets |
0 |
(1,667) |
0 |
(1,667) |
||
Depreciation |
(34,370) |
(189,250) |
0 |
(223,619) |
||
Impairment |
(24,012) |
(54,837) |
(3,103) |
(81,953) |
||
Disposals |
203 |
7,193 |
0 |
7,396 |
||
As at 31/12/2025 |
(580,745) |
(3,121,031) |
(26,201) |
(3,727,978) |
||
|
|
|
|
|
||
Carrying amount as at 01/01/2015 |
722,034 |
2,033,219 |
115,678 |
2,870,931 |
||
Carrying amount as at 31/12/2025 |
625,253 |
1,778,578 |
83,549 |
2,487,379 |
||
|
||||||
2024 |
Land and buildings |
Technical equipment and machinery, factory and office equipment |
Down payments and assets under construction |
Total |
||
|---|---|---|---|---|---|---|
Cost |
|
|
|
|
||
As at 01/01/2024 |
1,195,510 |
4,758,149 |
193,533 |
6,147,191 |
||
|
|
|
|
|
||
Currency translation adjustment |
37,321 |
121,349 |
4,612 |
163,281 |
||
Addition |
11,068 |
64,493 |
56,721 |
132,281 |
||
Disposals |
(54) |
(10,077) |
0 |
(10,131) |
||
Reclassifications |
26,264 |
86,785 |
(113,048) |
0 |
||
As at 31/12/2024 |
1,270,107 |
5,020,698 |
141,8171 |
6,432,622 |
||
|
|
|
|
|
||
Accumulated depreciation |
|
|
|
|
||
As at 01/01/2024 |
(497,379) |
(2,759,313) |
(24,786) |
(3,281,478) |
||
|
|
|
|
|
||
Currency translation adjustment |
(11,456) |
(48,208) |
(1,353) |
(61,017) |
||
Depreciation |
(35,488) |
(188,422) |
0 |
(223,910) |
||
Impairment |
(3,751) |
0 |
0 |
(3,751) |
||
Disposals |
0 |
8,464 |
0 |
8,464 |
||
As at 31/12/2024 |
(548,073) |
(2,987,479) |
(26,139) |
(3,561,691) |
||
|
|
|
|
|
||
Carrying amount as at 01/01/2024 |
698,131 |
1,998,835 |
168,747 |
2,865,713 |
||
Carrying amount as at 31/12/2024 |
722,034 |
2,033,219 |
115,678 |
2,870,931 |
||
|
||||||
Property, plant and equipment are measured at cost, including capitalized borrowing costs, less accumulated depreciation and accumulated impairment losses.
Depreciation is calculated according to the straight-line method based on the estimated useful lives. The estimated useful lives of the major asset classes are as follows:
Land use rights |
30 to 50 |
|---|---|
Buildings |
10 to 50 |
Fiber and pulp production lines |
5 to 15 |
Energy production plants |
4 to 25 |
Other machinery |
4 to 20 |
Vehicles |
4 to 20 |
Office equipment and other fixtures and fittings |
2 to 15 |
IT hardware |
2 to 7 |
All items of property, plant and equipment are tested for impairment in accordance with IAS 36 if there are any indications that these assets may be impaired (see note 10).
Operating leases as a lessor
Operating leases are in place for land and buildings with acquisition cost of EUR 42,552 thousand as at December 31, 2025 (December 31, 2024: EUR 42,622 thousand). The carrying amount of this land and buildings is EUR 8,713 thousand as at December 31, 2025 (December 31, 2024: EUR 9,262 thousand). Depreciation of EUR 818 thousand was recognized on these assets in the 2025 financial year (2024: EUR 808 thousand). For further details on rental income from operating leases see note 20.
Capitalization of borrowing costs
Borrowing costs of EUR 1,212 thousand were capitalized on property, plant and equipment in 2025 (2024: EUR 2,574 thousand). A weighted average interest rate or 3.48 percent (2024: 3.02 percent) was used.
The Lenzing Group defines qualifying assets as construction projects or other assets that require at least twelve months to be ready for their intended use or sale. They are capitalized under the item “financing costs” and the respective asset account. All other borrowing costs are recognized in the financial result for the period in which they are incurred.