Capital Expenditure (CAPEX) refers to strategic investments made to acquire, upgrade, or maintain physical assets, including industrial plants and automated assembly lines. These investments are grouped into four main categories: Tangible Assets (land, facilities, machinery), Improvements that increase asset value or efficiency, Intangible Assets (software, patents), and Construction in Progress for large projects.

The key distinction from Operating Expenses (OPEX) is that routine repairs are OPEX, while expenditures that enhance value or extend asset life are CAPEX.

For the green steel transition, CAPEX drives long-term transformation. Unlike operating expenses, CAPEX is capitalized and depreciated over time, demonstrating a company’s commitment to future-ready infrastructure. For industries under climate mandates, targeted CAPEX is essential for structural decoupling.