Río Project
Productive equipment evaluation
Within ownership Group Strategic Development Framework, it has been foreseen the possibility to extend amortization period of basic machinery by considering the fact that manufacturing lines will remain valid for production for a longer period in years than expected in current accounting depreciation. This was due not only because of machinery quality itself but also on account of subsequent modernizations and adaptations to new quality needs that have regularly been carried out and which will be done in the future. To this aim, we have been requested to set up a Technical Evaluation Plan of existing production equipment.
In this Plan, we have set the following criteria:
– Additional Life span
This is the period in years that, further to technical analysis of its current state and attending modernization plans foreseen and/or recommended by the assessor, Process Line could continue to ensure quality and production levels at least of the same range than currently. This period starts from end of its book depreciation.
– Net book value
For each of them, we considered this value equal to the one given by company Financial Services and which includes the portion corresponding to various modifications carried out.
