Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

Property, Plant and Equipment

v3.22.4
Property, Plant and Equipment
12 Months Ended
Dec. 31, 2022
Disclosure of detailed information about property, plant and equipment [abstract]  
Property, Plant and Equipment

18. Property, plant and equipment

Changes in items of property, plant and equipment in 2022 are as follows:

 

 

 

Land and
buildings

 

 

Plant and
machinery

 

 

Industrial
and
commercial
equipment

 

 

Other
tangible
assets

 

 

Assets under
construction
and
advances

 

 

Total

 

 

 

(EUR thousand)

 

Cost

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At January 1, 2021

 

 

148,331

 

 

 

375,902

 

 

 

41,189

 

 

 

11,316

 

 

 

61,293

 

 

 

638,031

 

Additions

 

 

2,060

 

 

 

26,826

 

 

 

3,862

 

 

 

913

 

 

 

82,970

 

 

 

116,631

 

Disposals

 

 

(141

)

 

 

(7,759

)

 

 

(1,188

)

 

 

(421

)

 

 

(35

)

 

 

(9,544

)

Reclassifications

 

 

7,719

 

 

 

44,412

 

 

 

2,027

 

 

 

856

 

 

 

(55,014

)

 

 

 

Exchange differences

 

 

1,946

 

 

 

6,358

 

 

 

379

 

 

 

227

 

 

 

732

 

 

 

9,642

 

At December 31, 2021

 

 

159,915

 

 

 

445,739

 

 

 

46,269

 

 

 

12,891

 

 

 

89,946

 

 

 

754,760

 

Additions

 

 

2,306

 

 

 

39,399

 

 

 

3,524

 

 

 

1,337

 

 

 

247,961

 

 

 

294,527

 

Disposals

 

 

(293

)

 

 

(2,693

)

 

 

(18

)

 

 

(249

)

 

 

(61

)

 

 

(3,314

)

Reclassifications

 

 

1,386

 

 

 

33,917

 

 

 

1,467

 

 

 

821

 

 

 

(37,591

)

 

 

 

Exchange differences

 

 

3,109

 

 

 

7,402

 

 

 

398

 

 

 

382

 

 

 

(1,728

)

 

 

9,563

 

At December 31, 2022

 

 

166,423

 

 

 

523,764

 

 

 

51,640

 

 

 

15,182

 

 

 

298,527

 

 

 

1,055,535

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and impairment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At January 1, 2021

 

 

63,563

 

 

 

222,804

 

 

 

29,900

 

 

 

8,107

 

 

 

 

 

 

324,374

 

Depreciation charge for the year

 

 

5,319

 

 

 

29,549

 

 

 

5,660

 

 

 

1,206

 

 

 

 

 

 

41,734

 

Impairment

 

 

 

 

 

547

 

 

 

396

 

 

 

 

 

 

 

 

 

943

 

Disposals

 

 

(140

)

 

 

(7,330

)

 

 

(1,053

)

 

 

(410

)

 

 

 

 

 

(8,933

)

Exchange differences

 

 

689

 

 

 

2,912

 

 

 

154

 

 

 

170

 

 

 

 

 

 

3,925

 

At December 31, 2021

 

 

69,431

 

 

 

248,482

 

 

 

35,057

 

 

 

9,073

 

 

 

 

 

 

362,043

 

Depreciation charge for the year

 

 

5,948

 

 

 

36,628

 

 

 

6,250

 

 

 

1,512

 

 

 

 

 

 

50,338

 

Impairment

 

 

 

 

 

44

 

 

 

 

 

 

 

 

 

 

 

 

44

 

Disposals

 

 

(293

)

 

 

(2,210

)

 

 

(5

)

 

 

(240

)

 

 

 

 

 

(2,748

)

Exchange differences

 

 

793

 

 

 

3,291

 

 

 

130

 

 

 

243

 

 

 

 

 

 

4,457

 

At December 31, 2022

 

 

75,879

 

 

 

286,235

 

 

 

41,432

 

 

 

10,588

 

 

 

 

 

 

414,134

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net book value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At December 31, 2022

 

 

90,544

 

 

 

237,529

 

 

 

10,208

 

 

 

4,594

 

 

 

298,527

 

 

 

641,402

 

At December 31, 2021

 

 

90,484

 

 

 

197,257

 

 

 

11,212

 

 

 

3,818

 

 

 

89,946

 

 

 

392,717

 

 

 

The Group’s property, plant and equipment mainly include:

-
Land and buildings in the amount of EUR 90,544 thousand as at December 31, 2022 and EUR 90,484 thousand as at December 31, 2021, mainly consisting of industrial properties;
-
Plant and machinery in the amount of EUR 237,529 thousand as at December 31, 2022 and EUR 197,257 thousand as at December 31, 2021 including machine and equipment for producing glass and plastic containers for pharmaceutical use;
-
Assets under construction and advances in the amount of EUR 298,527 thousand as at December 31, 2022 and EUR 89,946 thousand as at December 31, 2021, including investments in production lines and machinery not yet completed and expected to enter into use in the coming years and the ongoing investments in the new facilities.

The yearly increase in property, plant and equipment amounts to EUR 294,527 thousand, of which 90% to support the Group growth strategy.

Increase in Land and buildings principally concerns the expansion of the industrial facilities mainly in the Mexican production plant.

The overall increases in Plant and machinery, considering both the yearly additions and the reclassification from assets under construction, amount to EUR 73,316 thousand and mainly refer to the purchase of new production equipment necessary to guarantee a high product quality standard and a high production capacity, characteristics necessary to consolidate the company's position in the biopharmaceutical market.

Assets under construction, amounted to EUR 298,527 thousand at December 31, 2022 and EUR 89,946 thousand at December 31, 2021, includes investments in production lines and machines for syringes, vials and cartridges production which have not yet been completed but are expected to enter into use in the coming years. This category also includes the investment for the new EZ-fill® plant in Latina, the investment for the new EZ-fill® hub in China, a new building in Piombino Dese, that will host both corporate offices and production areas, and the investments for the construction of the new U.S. facility in Fishers, Indiana. This latter is expected to begin validation activities in the fourth quarter of 2023 with revenue generation beginning in 2024. The U.S. hub enables Stevanato Group to be in closer proximity to its North America pharmaceutical customers and to provide an additional supply source for its mission critical products to serve customers better. The plant, which is expected to be up to 565,000 square feet, will support the expansion and production of Stevanato Group’s EZ-Fill® solutions for bio-pharmaceutical use. The decision to follow a modular approach allows the Group to be flexible in modifying or changing the capacity to meet market demand. The facility will house production lines to produce EZ-Fill® syringes and vials. In line with customer demand and as a result of the increased production capacity, the Group expect to better support customers’ needs for biologics and vaccine treatments. As part of this capital project, in February 2022, Stevanato Group entered into an agreement with the U.S. government’s Biomedical Advanced Research and Development Authority (BARDA), which is part of the U.S. Department of Health and Human Services, through its partnership with the U.S. Department of Defense. Under the agreement, BARDA will make a multi-year contribution for up to approximately USD 95 million (or approximately EUR 85 million) for manufacturing capacity for standard and EZ-Fill® vials in support of U.S. national defense readiness and preparedness programs for current and future public health emergencies.

As at December 31, 2022 committed orders related to the ongoing investments equaled approximately EUR 270 million, net of the expected contribution from BARDA.

At the year end, no impairment indicators have been identified and furthermore no need to reassess useful life of property, plants and equipment.