17 Property, plant and equipment
             
MEUR            
  Land Buildings
and
constructions
Machinery
and
equipment
Other
tangible assets
Assets
under
construction
Total
 
2011
Gross carrying amount at
January 1 2011
89 1,830 3,447 159 757 6,282
Exchange differences -2 -3 -4 0 -1 -10
Additions 4 33 52 3 249 341
Disposals -2 -18 -56 -3 -4 -83
Reclassifications 6 356 485 1 -848 0
Reclassified as non current asset held for sale -1 -167 -12 - -3 -183
Gross carrying amount at
December 31 2011
94 2,031 3,912 160 150 6,347
             
Accumulated depreciation and
impairment losses at
January 1 2011
- 757 1,475 71 - 2,303
Exchange differences - -1 -2 0 - -3
Disposals - -16 -51 -3 - -70
Reclassifications - 0 0 - - 0
Depreciation for the period - 66 223 16 - 305
On non current assets reclassified as held for sale - -146 -10 - - -156
Accumulated depreciation and
impairment losses at
December 31 2011
- 660 1,635 84 - 2,379
             
Carrying amount at
January 1 2011
89 1,073 1,972 88 757 3,979
Carrying amount at
December 31 2011
94 1,371 2,277 76 150 3,968
             
             
MEUR            
  Land Buildings
and
constructions
Machinery
and
equipment
Other
tangible assets
Assets
under
construction
Total
 
2010
Gross carrying amount at
January 1 2010
71 1,491 2,836 123 848 5,369
Exchange differences 1 29 4 1 3 38
Additions 9 100 330 21 464 924
Increases through business
combinations
1 3 2 - - 6
Disposals 0 -6 -90 0 -17 -113
Reclassifications 7 213 365 14 -541 58
Gross carrying amount at
December 31 2010
89 1,830 3,447 159 757 6,282
             
Accumulated depreciation and
impairment losses at
January 1 2010
- 689 1,385 60 - 2,134
Exchange differences - 22 2 0 - 24
Disposals - -5 -90 0 - -95
Reclassifications - -5 -4 -1 - -10
Depreciation for the period - 56 182 12 - 250
             
Accumulated depreciation and
impairment losses at
December 31 2010
- 757 1,475 71 - 2,303
             
Carrying amount at
January 1 2010
71 802 1,451 63 848 3,235
Carrying amount at
December 31 2010
89 1,073 1,972 88 757 3,979
             
             
Finance leases
             
Machinery and equipment include assets where the Group is a lessee under a finance lease as specified in the following table.
             
MEUR         2011 2010
Gross carrying amount         249 227
Accumulated depreciation         62 50
Carrying amount         187 177
             
Capitalized borrowing costs
             
Borrowing costs amounting to EUR 16 million (2010: EUR 22 million) were capitalized during the financial period related to the Renewable Fuels investment projects in Singapore and Rotterdam as well as Oil Products investment project in Bahrain. They are included in 'Property, Plant and Equipment'. The Group's average interest rate of borrowings for each month was applied as the capitalization rate, which resulted in average capitalization rate of 3.38% (2010: 2.53%).