8 PROPERTY, PLANT AND EQUIPMENT AND GOVERNMENT GRANTS

In October 2020 the U.S. Department of Defense and the U.S. Department of Health and Human Services awarded a government grant of USD 32.9 million to launch new production capacities in the U.S. for pipette tips, which are key components for COVID-19 testing. The amount was fully paid to the Group at year-end 2022 (CHF 30.4 million). The related production lines are reported in position property, plant and equipment and are ready for use since April 2023. Consequently, the Group has started to reverse the government grant in the consolidated statement of profit or loss in proportion to the depreciation amount (CHF 1.5 million, included in position other operating income).