Ando Hazama

Basic Information

Stock Code
1719
Industry
Construction
Category Detail
Construction & Civil Engineering
Prefecture
Tokyo
Establishment Year
October 2003
Listing Year
October 2003
Official Website
https://www.ad-hzm.co.jp
TSE Information
TSE Information
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Other Companies
Taisei Corp., Obayashi Corp., Shimizu Corp., Haseko Corp., Kajima, Nishimatsu Construction, Okumura Gumi, Toda Corp., Kumagai Gumi, Toyo Construction, Infroneer Holdings

Overview

Ando Hazama is a semi-major construction company established in 2003, with strengths in building and civil engineering, actively expanding both domestically and internationally.

Current Situation

Ando Hazama recorded consolidated sales of approximately 378.1 billion yen and operating profit of approximately 24.7 billion yen for the fiscal year ending March 2020, maintaining a stable revenue base. Through mergers, competitiveness has improved in both building and civil engineering sectors. In particular, in civil engineering, it has secured major projects such as the non-open-cut section of Shinagawa Station on the Linear Chuo Shinkansen either independently or as JV leader. It possesses advanced technological capabilities, having won the Japan Society of Civil Engineers Award multiple times, and focuses on sustainability and safety measures. It promotes efficient management through group reorganization and head office relocation, while strengthening ties with Mizuho Bank and Itochu Corporation. Moving forward, it positions domestic large-scale social infrastructure development and overseas market expansion as key growth strategies, aiming for business growth and technological innovation toward 2030.

Trivia

Interesting Facts

  • Merged Ando Construction (building) and Hazama Gumi (civil engineering)
  • The only semi-major general contractor to independently secure Linear Chuo Shinkansen works
  • Won Japan Society of Civil Engineers Awards multiple times independently or as JV leader
  • Belongs to Mizuho Group through merger led by Mizuho Bank
  • Handles many projects related to Itochu Corporation
  • Past reports of fraudulent claims in decontamination business
  • Large-scale fire at construction site in 2018 resulting in fatalities
  • Company name pronounced 'Ando Hazama', commonly known as 'Ando Hazama'
  • Has experience of naming suspension by Ministry of the Environment
  • High ratio of civil engineering orders among semi-major general contractors
  • Relocated headquarters to Tokyo Shiodome Building in 2022
  • Numerous achievements in large commercial and public facilities
  • Actively utilizing IT technology for construction site safety education
  • Participating in large infrastructure projects domestically and internationally
  • Collaborating with super general contractors like Kajima in multiple JVs

Hidden Connections

  • Former Ando Construction and Hazama Gumi merged through Mizuho Bank's facilitation
  • Hazama Gumi's former headquarters was located next to Itochu Corporation's head office building
  • Forms JVs with Kajima Construction for large-scale facilities
  • Long-term business relationship in construction of Toppan-related facilities
  • Strengthened site safety management after Tama City fire accident
  • Leading the industry with IT utilization via app for young worker education
  • Close cooperative relationship with local governments in region-specific redevelopment projects
  • Actively expanding overseas business centered on Asia and Central/South America

Future Outlook

Growth Drivers

  • Expansion of domestic large-scale infrastructure development demand
  • Progress of major public works such as Linear Chuo Shinkansen
  • Active overseas expansion in Asia and Central/South America
  • Increase in environmentally considerate facility construction
  • Strengthening of civil engineering business leveraging advanced technology
  • Efficiency gains through DX and IT utilization at construction sites
  • Enhanced social trust through strengthened safety management
  • Organizational strengthening through diverse talent development
  • Expanded order intake for large projects via JVs
  • Management strategy centered on sustainability

Strategic Goals

  • Aim for consolidated sales exceeding 500 billion yen
  • Balanced expansion of building and civil engineering businesses domestically and internationally
  • Promotion of environmental impact reduction and sustainable construction
  • Full-scale deployment of IT and digital technologies
  • Achieve industry-leading safety management standards
  • Secure and develop diverse, talented personnel
  • Achieve over 30% revenue ratio from overseas business
  • Sustainable value creation through collaboration with local communities
  • Deepening of women's empowerment and work-style reforms
  • Development and practical application of new construction technologies

Business Segments

Large-scale Infrastructure Construction

Overview
Undertakes infrastructure development works for national and local governments, implementing safe and efficient construction management.
Competitiveness
Advanced civil engineering technology and extensive JV leadership experience
Customers
  • Ministry of Land, Infrastructure, Transport and Tourism
  • Local governments
  • Expressway companies
  • Railway operators
  • Public works clients
Products
  • Tunnel excavation works
  • Bridge construction
  • Road paving
  • Station improvement works
  • Transportation facility development

Urban Building Projects

Overview
Handles multipurpose building construction in urban areas, focusing on comfortable and advanced spaces.
Competitiveness
Flexible construction technology tailored to customer needs
Customers
  • Private developers
  • Major retail companies
  • Hotel chains
  • Large commercial facility operators
  • Corporate headquarters building managers
Products
  • High-rise office building construction
  • Large commercial facility construction
  • Logistics center development
  • Public cultural facility construction
  • Hotel construction

Environmental Facility Construction

Overview
Designs and constructs sustainable facilities aimed at reducing environmental impact.
Competitiveness
Integration of environmental technology and construction expertise
Customers
  • Ministry of the Environment
  • Local governments
  • Energy companies
  • Waste treatment companies
  • Renewable energy companies
Products
  • Biomass power plant construction
  • Water purification plant development
  • Waste treatment plant construction
  • Environmental protection equipment
  • Energy-saving building design

Residential-related Construction

Overview
Provides high-quality living environment construction and renovation, focusing on safe and secure housing.
Competitiveness
High level of detailed design and construction quality
Customers
  • Housing developers
  • Owners' associations
  • Individual customers
  • Renovation contractors
  • Condominium operators
Products
  • For-sale housing construction
  • Apartment complex construction
  • Luxury detached housing
  • Residential renovation
  • Seismic retrofitting

Overseas Projects

Overview
Expands international business mainly in Asia and Central/South America, addressing diverse civil engineering and construction needs.
Competitiveness
Balance of local adaptation and advanced technology
Customers
  • Foreign governments
  • International development agencies
  • Multinational corporations
  • Asian and Central/South American government agencies
  • International JV partners
Products
  • Large-scale civil engineering works
  • Road construction
  • Water infrastructure development
  • International JV project management
  • Project management

Technology Development and Consulting

Overview
Provides research and development of construction technologies along with consulting services.
Competitiveness
Site support leveraging the latest technology
Customers
  • Construction industry companies
  • Government agencies
  • Research institutions
  • General contractors
  • Local governments
Products
  • Civil engineering design technology
  • Construction management software
  • Seismic diagnostics
  • Environmental assessments
  • Safety management systems

Materials Procurement and Equipment Rental

Overview
Offers procurement services for essential construction site materials and equipment.
Competitiveness
Stable supply and strong regional network
Customers
  • General contractors
  • Construction companies
  • Contractors
  • Local public entities
  • Private operators
Products
  • Building materials supply
  • Civil engineering materials sales
  • Heavy equipment rental
  • Surveying equipment rental
  • Safety equipment provision

Maintenance and Management Services

Overview
Provides post-completion facility maintenance and safety management services to preserve long-term value.
Competitiveness
Proven track record in diverse facilities
Customers
  • Infrastructure managers
  • Facility operators
  • Public transportation
  • Corporations
  • Real estate management companies
Products
  • Building inspections
  • Equipment maintenance
  • Seismic reinforcement works
  • Environmental safety management
  • Repair works

IT System Development and Utilization

Overview
Provides IT tools aimed at improving safety and efficiency at construction sites.
Competitiveness
In-house developed technology closely aligned with site needs
Customers
  • Construction companies
  • Project management companies
  • Safety management departments
  • Design offices
  • Supervisory organizations
Products
  • Site safety apps
  • Construction management software
  • Design support tools
  • Labor management systems
  • BIM utilization services

Education and Training Services

Overview
Supports human resource development through industry-standard education programs.
Competitiveness
Training content reflecting on-site experience
Customers
  • Construction companies
  • Subcontractors
  • Young engineers
  • Craftsmen
  • Safety managers
Products
  • Safety education programs
  • Technical training
  • New hire training
  • Leadership training
  • IT training

Recycling and Waste Treatment

Overview
Promotes environmentally conscious waste treatment and resource recycling.
Competitiveness
Advanced recycling technology and treatment facilities
Customers
  • Construction companies
  • Local governments
  • Private waste handlers
  • Industry associations
  • Factory owners
Products
  • Construction waste recycling
  • Industrial waste treatment
  • Environmental impact reduction plans
  • Resource recycling services
  • Material recovery

Safety Management Services

Overview
Provides safety management systems and education specialized in accident prevention.
Competitiveness
Proven safety measures know-how
Customers
  • Construction sites
  • Logistics companies
  • Public facility managers
  • Large-scale event operators
  • Local governments
Products
  • Site safety management system establishment
  • Fire monitoring services
  • Safety inspections
  • Risk assessment services
  • Disaster prevention plans

Competitive Advantage

Strengths

  • High technological capabilities in building and civil engineering
  • Abundant JV leadership experience
  • Strong customer base (both public and private)
  • Broad business expansion domestically and internationally
  • Stable financial foundation
  • High-quality construction management capabilities
  • Promotion of environmental technology adoption
  • Support from Mizuho Bank Group
  • Strong collaboration with Itochu Corporation
  • Securing diverse specialized technicians
  • Overseas market development with growth potential
  • Site operations focused on safety management
  • Technological recognition from Japan Society of Civil Engineers Awards
  • Competitiveness in high-speed rail and other large projects
  • Wide range of service offerings

Competitive Advantages

  • Top-class technological strength among semi-major players in civil engineering
  • Construction capability to secure Shinagawa Station on Linear Chuo Shinkansen independently
  • Track record of leading large construction projects as JV organizer
  • Business expansion integrating environmental considerations and sustainability
  • Stable financial support from major financial institutions
  • Long-term trust built in large public and private projects
  • Multi-regional deployment to address diverse market risks
  • Introduction of advanced safety management and education programs
  • Achieving both quality and efficiency through advanced construction technology
  • Flexible response in domestic and international infrastructure development
  • Improved site efficiency through IT and DX technology utilization
  • Strengths in environmental facilities and renewable energy fields
  • Versatile design and construction capabilities for diverse buildings
  • Proactive stance on human resource development and organizational strengthening
  • Expansion in technology development and consulting fields

Threats

  • Intense competition in the construction industry
  • Order uncertainty due to fluctuations in public works budgets
  • Risks of delays and accidents in large projects
  • Constraints on construction capacity due to labor shortages
  • Cost increases from strengthened environmental regulations
  • Natural disaster risks
  • Political and economic risks in overseas operations
  • Potential loss of social trust
  • Fluctuations in construction material prices
  • Stricter labor safety management
  • Lagging behind in technological innovation competition
  • Declining market demand trends

Innovations

2023: Development of Safety Management App for Construction Sites

Overview
Launched an app in collaboration with Yappli to enhance safety education and monitoring at construction sites.
Impact
Contributes to accident prevention and improved work efficiency

2021: Completion of Environmentally Friendly Biomass Power Plant Construction

Overview
Constructed a biomass power plant in Kagawa Prefecture to promote renewable energy business.
Impact
Contributes to improving regional energy self-sufficiency

2022: Introduction of New Tunnel Construction Method in Linear Chuo Shinkansen Works

Overview
Developed and applied safe, high-speed construction technology for large-diameter shield tunnels.
Impact
Achieved shortened construction period and improved safety

2020: Advanced Seismic Retrofit Technology for Buildings

Overview
Developed and put into practical use a new method to enhance seismic performance of existing buildings.
Impact
Contributes to improved safety of public facilities

Sustainability

  • Promotion of green construction aimed at reducing environmental impact
  • Improvement of safety management and work environment in line with work-style reforms
  • Strengthening of waste recycling and material reuse
  • Contributions to local communities and support for environmental education
  • Digitalization of construction sites and introduction of energy-saving technologies
  • Establishment of sustainable materials procurement policies
  • Enhancing diversity through promotion of women and young engineers
  • Business expansion considering contributions to regional economies
  • Active construction of renewable energy facilities
  • Strengthening of safety-first site operation systems
  • Updating of occupational health and safety management systems
  • Establishment of governance fulfilling social responsibilities