Tekken Construction

Basic Information

Stock Code
1815
Industry
Construction
Category Detail
Construction & Civil Engineering
Prefecture
Tokyo
Establishment Year
February 1944
Listing Year
October 1961
Official Website
https://www.tekken.co.jp/
TSE Information
TSE Information
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Other Companies
Hazama Ando, Taisei Construction, Obayashi, Shimizu Construction, Haseko Corporation, Matsui Ken, Zenitaka, Kajima, Nishimatsu Construction, Toiteko, Toda Construction, Kumagai Gumi, Infroneeria Holdings

Overview

Tekken Construction is a major comprehensive construction company founded in 1944, with strengths in railway-related projects, boasting stable performance as one of Japan's leading general contractors.

Current Situation

Tekken Construction recorded consolidated net sales of 183.586 billion yen and net profit of 4.26 billion yen for the fiscal year ending March 2024. Railway construction accounts for about 30% of sales, with extensive experience in large-scale public works such as Tokyo Station. Competitors include Kajima Construction and Taisei Corporation, and its strong relationship with JR East contributes to business stability. The company has constructed its headquarters using the latest seismic isolation technology and installed a rooftop green garden model that considers urban environments. In the medium to long term, it aims to deepen technological development in the railway sector while capturing urban infrastructure demand both domestically and internationally. On the capital side, collaboration with Kajima Construction is being strengthened through mutual stock ownership. In the future, it is expected to further expand its competitive edge by leveraging overseas bases and diverse civil engineering projects.

Trivia

Interesting Facts

  • Independent company with no capital ties to the former Japan Railway Construction Public Corporation
  • Company headquarters is an advanced facility that completed in-situ seismic isolation works
  • Construction Technology Comprehensive Center features full-scale railway track training facilities
  • Serves as core for railway construction as a JR East affiliate
  • Long history in railway construction dating back to the 1930s
  • President is former Kajima Construction executive with high trust in the construction industry
  • Architectural technology training facility featured on TV programs as a technical hub
  • Rooftop greening model garden at headquarters is a prime example of urban environmental consideration
  • Tekken Construction brand synonymous with railway works over many years
  • Major shareholders include many railway-related companies such as JR East

Hidden Connections

  • Implements technology development and personnel exchange through mutual stock ownership with Kajima Construction.
  • Equity-method affiliate of JR East with strong capital and technical ties.
  • Deepens collaboration with related companies in Chiyoda Ward, Tokyo urban redevelopment.
  • Construction Technology Comprehensive Center central to industry technical standards and personnel training.
  • Strong relationships with Ministry of Land, Infrastructure, Transport and Tourism and local governments due to railway construction track record.
  • Advances large-scale projects through tripartite collaboration with Kajima Construction and JR East.
  • Numerous partnerships for technical training facilities featured on TV programs.
  • Majority of capital supported by institutional investors and major banks.

Future Outlook

Growth Drivers

  • Increasing demand for infrastructure renewal due to domestic aging
  • Expansion of urban redevelopment and environmentally considerate construction
  • Railway works expansion through strengthened JR East collaboration
  • Expansion of railway and infrastructure demand in Southeast Asian markets
  • Improved construction efficiency and quality through DX promotion
  • Enhanced customer evaluations from safety and environmental responsiveness
  • Securing technological prowess through advanced personnel development
  • Diversification of real estate-related business
  • Stable public works ordering situation
  • Method innovations toward achieving decarbonized society

Strategic Goals

  • Maintain and expand railway business sales ratio above 40%
  • Stable operation and advancement of technical training center
  • Standard application of low-environmental-impact construction technology
  • Expand overseas infrastructure sales to 15% of total sales
  • Build next-generation construction management system using digital technology
  • Achieve carbon neutrality for buildings
  • Promote workforce diversification and work-style reforms
  • Continuous strengthening of safety culture
  • Intensify symbiotic activities with local communities
  • Establish sustainable material procurement

Business Segments

Railway Infrastructure Business

Overview
Specializes in providing railway-related civil engineering works and infrastructure maintenance.
Competitiveness
High safety quality management capabilities and long track record in railway works.
Customers
  • JR Group Companies
  • Railway Operators
  • Local Governments
  • Road Authorities
  • Construction Companies
  • Government Agencies
Products
  • Railway Track Works
  • Tunnel Excavation
  • Bridge Design and Construction
  • Signal Equipment Works
  • Level Crossing Installation
  • Track Anomaly Restoration

Urban Civil Engineering and Construction Business

Overview
Provides comprehensive civil engineering and architectural works required for urban development.
Competitiveness
Base isolation methods using the latest technology and environmentally considerate designs.
Customers
  • Local Governments
  • Building Owners
  • Commercial Facility Operators
  • Real Estate Developers
  • Construction Consultants
Products
  • Road Construction
  • Bridge Works
  • Office Building Construction
  • Commercial Facility Construction
  • Base Isolation Construction

Real Estate Management and Development

Overview
Real estate business supporting from development to management in an integrated manner.
Competitiveness
Seamless service provision through group collaboration.
Customers
  • Real Estate Investors
  • Corporate Entities
  • Urban Development Operators
  • Asset Management Companies
Products
  • Real Estate Operations Management
  • Condominium Development
  • Office Building Management
  • Rental Management

Education and Training Business

Overview
Conducts education and training aimed at improving construction technology.
Competitiveness
Strengths in on-site training facilities and specialized instructors.
Customers
  • Construction Industry Companies
  • Local Governments
  • Public Agencies
  • Technical Training Institutions
  • Consulting Companies
Products
  • Training Programs
  • Safety Education
  • Technical Guidance
  • Construction Management Training

Overseas Infrastructure Business

Overview
Focuses on overseas infrastructure development centered on Asia.
Competitiveness
Abundant construction track record and know-how as a major domestic player.
Customers
  • Asian Governments
  • International Development Organizations
  • Overseas Construction Companies
  • Multinational Corporations
Products
  • Bridge Construction
  • Railway Infrastructure Development
  • Technical Support
  • Project Management

Competitive Advantage

Strengths

  • Top-class construction track record in railway works
  • Technological prowess in advanced seismic isolation and earthquake resistance methods
  • Strong collaborative relationship with JR East
  • Nationwide branch network
  • Stable financial base and capital alliances
  • Brand power from extensive construction experience
  • Technological capabilities adaptable to diverse construction fields
  • Industry trust from long history
  • Human resource development through Construction Technology Comprehensive Center
  • Improved construction quality via latest equipment introduction
  • Active efforts in environmentally considerate construction
  • Regionally focused sales expansion
  • Strong shareholder base
  • Technology innovation promotion through collaborations
  • Market expansion capabilities domestically and internationally

Competitive Advantages

  • Achieves high-quality construction through extensive expertise and experience in railway sector
  • Develops excellent technicians via advanced training system at Construction Technology Comprehensive Center
  • Secures competitive edge and technology exchange through mutual stock ownership with Kajima Construction
  • Enhances building safety with advanced introduction of seismic isolation retrofit methods
  • Enables lump-sum contracts with comprehensive capabilities across multiple fields
  • Solid track record centered on central Tokyo
  • Expanding growth base in overseas Asian markets
  • Accumulated advanced know-how in safety management
  • Possesses know-how in environmentally responsive architectural technology
  • Capable of handling large-scale projects with solid capital strength
  • Flexible construction proposals tailored to diverse customer needs
  • Business efficiency improvement through intra-group collaboration
  • Stable order base from long-term client relationships
  • Stable profitability from abundance of public sector projects
  • Quality assurance through advanced construction management systems

Threats

  • Risk of impact from cuts in public infrastructure budgets
  • Profit margin squeeze from rising construction material prices
  • Industry-wide labor shortages and aging of skilled technicians
  • Price pressures from intensifying competition in domestic construction market
  • Risk of construction delays from natural disasters at sites
  • Risk of increased schedules and costs from stricter regulations
  • Increased compliance costs from strengthened environmental regulations
  • Risk of demand decline from economic fluctuations
  • Political and currency risks associated with overseas operations
  • Risk of lagging behind technological innovations
  • Intensifying competition from new entrants
  • Increased operational costs from strengthened labor safety standards

Innovations

2024: Practical Implementation of Seismic Isolation Retrofit Method

Overview
Developed and applied in-situ seismic retrofitting technology to improve safety.
Impact
Significantly improved the seismic performance of company buildings.

2023: Enhancement of Construction Technology Comprehensive Center Facilities

Overview
Expanded outdoor track facilities and enriched safety education programs.
Impact
Contributes to strengthening technician development.

2022: Installation of Urban Environment Model Garden

Overview
Completed rooftop greening model to promote environmentally responsive architecture.
Impact
Successfully enhanced corporate image for environmentally considerate construction.

2021: Promotion of DX for Construction Management Efficiency

Overview
Introduced AI-based construction progress monitoring system.
Impact
Contributes to improved construction quality and safety.

2020: Expansion of Overseas Bases

Overview
Strengthened overseas branches targeting business expansion in Southeast Asia.
Impact
Lays foundation for increased overseas sales.

2024: Expansion of Low-Environmental-Impact Materials Adoption

Overview
Promotes reduction in environmental load through adoption of sustainable construction materials.
Impact
Increased projects obtaining environmental certifications, improved ESG ratings.

2023: Overhaul of Construction Safety Management System

Overview
Strengthened safety management with latest IoT devices.
Impact
Contributes to reduced accidents and improved construction efficiency.

2022: Full-Scale Introduction of ICT Construction Management

Overview
Achieved shorter schedules and higher productivity through ICT technology.
Impact
10% schedule reduction, cost savings effects.

2021: Development of Environmentally Considerate Building Models

Overview
Established architectural models themed on reducing environmental impact.
Impact
Succeeded in improving customer satisfaction and market differentiation.

2020: Online Transformation of Training Programs

Overview
Provided construction technology training online to improve convenience and participation rates.
Impact
Contributes to efficient technician development effects.

Sustainability

  • Disaster countermeasures through improved seismic isolation and earthquake resistance of buildings
  • Promotion of heat island countermeasures via urban rooftop greening
  • Promotion of energy-saving equipment meeting latest environmental standards
  • Active adoption of low-environmental-impact materials
  • Continuous strengthening of health and safety initiatives
  • Waste reduction and recycling promotion
  • Environmentally considerate construction utilizing local resources
  • Promotion of green building certifications
  • Internal rollout of environmental education programs
  • Challenge toward carbon-neutral construction
  • Introduction of water resource utilization technologies
  • Participation in local ecosystem preservation activities