Property, plant and equipment, net

9 Months Ended

Sep. 30, 2015

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

11.

Property, plant and equipment, net

The Company’s property, plant and equipment as of September 30, 2015 and December 31, 2014 are summarized as follows (figures are in thousands of USD):

	September 30, 2015		December 31, 2014
Land use rights and buildings	$	52,538	$	48,956
Machinery and equipment		116,759		119,597
Electronic equipment		7,693		7,706
Motor vehicles		4,686		4,609
Construction in progress		4,611		5,463
Total amount of property, plant and equipment ⁽¹⁾		186,287		186,331
Less: Accumulated depreciation ⁽²⁾		(110,275)		(103,865)
Total amount of property, plant and equipment, net ⁽³⁾	$	76,012	$	82,466

(1)

Through the acquisition of Fujian Qiaolong in the second quarter of 2014, the Company acquired $3.7 million of property, plant and equipment, consisting of $3.4 million of land use rights and buildings, $0.2 million of machinery and equipment, and $0.1 million of motor vehicles, which are depreciated over a weighted average life of 43.0 years, 3.5 years, and 3.1 years, respectively.

(2)

Depreciation charges were $3.4 million and $3.7 million for the three months ended September 30, 2015 and 2014, respectively, and $11.0 million and $11.4 million for the nine months ended September 30, 2015 and 2014, respectively.

(3)

As of September 30, 2015 and December 31, 2014, the Company had pledged property, plant and equipment with net book value of $41.0 million and $45.5 million, respectively, for its comprehensive credit facilities with banks in China.

(4)

During the nine months ended September 30, 2015, $1.6 million of government subsidies were recorded as a reduction of the cost of property, plant and equipment.