In 2011, capital spending (including leasing) totaled € 372 million, which was € 24 million or 6.1% less than in 2010. As a result, the ratio of capital spending to total revenues was 3.6% in 2011, compared to 4.3% in 2010.
Individual capital investment projects, each with a value of more than € 1 million, accounted for nearly 54% of capital spending. In regional terms, Europe, primarily Germany and Switzerland, accounted for around 76% of the total. In Germany, Merck invested € 135 million in both new and expanded production capacities as well as in research and development facilities in Darmstadt and Gernsheim in particular, our two largest production sites. In Switzerland, capital spending totaled € 75 million, mainly for the expansion of our biopharmaceutical production facilities.
In North America, we spent € 38 million – about € 29 million for the Chemicals business sector and around € 9 million for Pharmaceuticals – and in Latin America € 19 million. Our subsidiaries in Asia accounted for a total capital spending volume of € 30 million, particularly for the Chemicals business sector.
Capital spending by the Pharmaceuticals business sector totaled € 202 million, with the Merck Serono division accounting for most of this amount. In 2011, the main focus of the investments was on the expansion of our biotech production capacities in Corsier-sur-Vevey, Switzerland. As in previous years, this represents the single largest capital investment project of the Merck Group. Around 26% of capital spending in Pharmaceuticals related to headquarters in Darmstadt, Germany.
Capital spending on property, plant and equipment
Capital spending on property, plant and equipment in the Chemicals business sector amounted to € 169 million, with the Merck Millipore division accounting for € 105 million and the Performance Materials division for € 64 million. Performance Materials invested chiefly in the Darmstadt and Gernsheim sites, our main locations (both in Germany), in order to expand and modernize existing production facilities and to improve infrastructure.
The capital spending of the Merck Millipore division also focused mainly on Darmstadt and Gernsheim as well as the United States. Around € 43 million of the division’s total capital spending was attributable to the former Millipore companies.