Property, Plant and Equipment

6 Months Ended

Jun. 30, 2023

Property, Plant and Equipment [Abstract]

Property, plant and equipment ("PP&E") consist of the following:


(In thousands)	June 30 2023		December 31 2022
Land	$	72,090	$	72,020
Land improvements	16,907		16,750
Buildings and improvements	208,666		217,926
Machinery and equipment	1,566,383		1,513,238
Uncompleted construction	78,420		84,472
Gross property, plant and equipment	1,942,466		1,904,406
Less: Accumulated depreciation	(1,292,804)		(1,247,531)
Property, plant and equipment, net	$	649,662	$	656,875

In the third quarter of 2020, a customer of HE in China ceased steel making operations at its steel mill site in order to relocate the operations to a new site, as a result of a government mandate to improve environmental conditions of the area, which led to HE having idled equipment on-site. The Company continues to provide services to the same customer at the new site. The customer had entered into an agreement with the government where it will receive compensation for the losses the customer has incurred as a result of the forced shutdown. The Company has continued discussions with the customer regarding compensation, including pursuing other avenues of recovery and seeking relief directly from the local government. Based on further discussions with the customer during the quarter ended June 30, 2023, the Company determined that recovery was no longer probable and recorded an impairment charge of $14.1 million related to the now abandoned equipment at the previous site, which is included in the caption Property, plant and equipment impairment charge in the Condensed Consolidated Statements of Operations.