Kumagai Gumi

Basic Information

Stock Code
1861
Industry
Construction Industry
Category Detail
Construction & Civil Engineering
Prefecture
Tokyo
Establishment Year
January 1938
Listing Year
April 1970
Official Website
https://www.kumagaigumi.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Ando Hazama, Taisei Corporation, Obayashi Corporation, Shimizu Corporation, Haseko Corporation, Kajima, Nishimatsu Construction, Okumura Corporation, Toda Construction, Infroneer Holdings

Overview

Kumagai Gumi is a semi-major general contractor founded in 1938 and a leading company in the construction industry with strengths in large-scale domestic and international building and civil engineering projects.

Current Situation

Kumagai Gumi achieved consolidated sales of approximately 443.2 billion yen and operating profit of approximately 12.6 billion yen for the fiscal year ending March 2024, with large-scale construction and civil engineering businesses both domestically and abroad as its mainstays. It boasts advanced technological capabilities in super high-rise buildings and tunnel construction, having undertaken globally renowned structures such as Taipei 101. The company is also focusing on sustainability, promoting the development of construction technologies toward a decarbonized society. Centered on its technical research institute, it is innovating new construction methods and shield tunnel technologies to maintain competitiveness in domestic and international projects. Furthermore, leveraging its capital alliance with Sumitomo Forestry, it is expanding into wooden construction and real estate businesses. Expectations are high for orders related to the Linear Central Shinkansen, with medium- to long-term growth anticipated. The company is focusing on strengthening its management foundation and diversifying its revenue structure to differentiate itself from competitors.

Trivia

Interesting Facts

  • High-level tunnel construction technology known as 'Mr. Tunnel Bear'
  • One of the few companies that has constructed world-class super high-rise buildings like Taipei 101
  • Deeply involved in Fukui Prefecture's reconstruction and nuclear power industry development in its history
  • Fined in 1990 for responsibility in the Okachimachi Tunnel collapse accident
  • Focusing on wooden construction field through capital and business alliance with Sumitomo Forestry
  • Overcame 1990s management crisis through bank debt forgiveness
  • Operates sports teams and has produced multiple professional baseball players
  • Track record in numerous world-class challenging tunnels
  • Has broad domestic and international bases with active international construction business
  • Evaluated by METI and others as a leader in decarbonization technology promotion
  • Introduced 'Kumagai Meister System' in 2012 to improve treatment of skilled workers
  • Celebrated 120th anniversary in 2018 as a long-established company with a rich history
  • Frequently featured in Nikkei and other media for personnel and industry trends
  • Maintains solid management base by specializing in large-scale civil engineering works
  • Overseas operations centered in Asia including Hong Kong, Taiwan, and Vietnam

Hidden Connections

  • Independently spun off from Tobishima Construction, with history of competition and collaboration in the industry
  • Founding families married with Maeda Corporation, maintaining close relations
  • Leading construction and timber industries across sectors through capital ties with Sumitomo Forestry
  • Deeply involved in construction of nuclear power plants in Fukui Prefecture, strengthening regional economic ties
  • Significantly strengthened safety management system based on lessons from Okachimachi Tunnel accident
  • Constructed numerous Japanese high-speed rail tunnels, long-term cooperation with railway companies
  • Contributing to sports culture by producing multiple professional baseball players
  • Actively promoting decarbonization technologies and sustainable construction, certified by METI

Future Outlook

Growth Drivers

  • Urban development effects from Tokyo Olympics-related projects
  • Expectations for large orders related to Linear Central Shinkansen
  • Increasing demand for environmental technologies in a decarbonized society
  • Expansion of infrastructure development needs in Asian emerging countries
  • Improved construction efficiency and safety through technological innovation
  • Composite business expansion through strengthened collaboration with Sumitomo Forestry
  • Ongoing increase in needs for aging infrastructure maintenance and repair
  • Spread of digitalization and smart construction technologies
  • Stable orders for large-scale civil engineering works domestically and abroad
  • Productivity improvements through work-style reforms
  • Expansion of the green construction market
  • Increasing demand for urban redevelopment and mixed-use facilities

Strategic Goals

  • Establish industry top-class status in decarbonized construction technologies
  • Become a major contractor for advanced infrastructure projects like Linear Shinkansen
  • Lead DX promotion in the construction industry
  • Achieve over 30% female worker ratio
  • Double sales in new domestic and international markets
  • Maintain and update highest-level safety management standards
  • Realize zero environmental impact construction sites
  • Establish skill succession for employees and entrench Meister System
  • Strengthen R&D of new materials and energy-saving technologies
  • Improve productivity through diverse talent utilization

Business Segments

Large-scale Public Civil Engineering Works

Overview
Main business focused on large-scale infrastructure development for government agencies.
Competitiveness
Advanced tunnel technology and long track record
Customers
  • Ministry of Land, Infrastructure, Transport and Tourism
  • Local Governments
  • Railway Operators
  • Government Agencies
Products
  • Tunnel Construction
  • Dam Construction
  • Bridge Construction
  • Highway Construction

Private Building Construction

Overview
Strength in constructing large commercial and office facilities in urban areas.
Competitiveness
Super high-rise building construction technology
Customers
  • Real Estate Companies
  • Developers
  • Commercial Facility Operators
  • Hotel Operators
Products
  • Super High-rise Building Construction
  • Commercial Facility Construction
  • Hotel Construction

Infrastructure Maintenance and Repair Works

Overview
Provides maintenance works for aging countermeasures and safety assurance.
Competitiveness
High-precision repair technology
Customers
  • Local Governments
  • Railway Companies
  • Highway Administrators
Products
  • Bridge Repair
  • Tunnel Maintenance
  • Road Repair

Real Estate Development and Management

Overview
Engages in planning, development, and management of real estate.
Competitiveness
Optimal operations leveraging construction expertise
Customers
  • Investors
  • Real Estate Owners
Products
  • Real Estate Development
  • Rental Management

Construction Technology Research and Consulting

Overview
Provides research and development of construction technologies and technical consulting.
Competitiveness
Accumulated on-site technology over many years
Customers
  • Construction Companies
  • Government Agencies
Products
  • Technology Development
  • Construction Management
  • Safety Management

Overseas Construction Business

Overview
Deploys large projects overseas, mainly in Asia.
Competitiveness
International construction track record and reliability
Customers
  • Overseas Governments
  • Multinational Corporations
  • International Organizations
Products
  • Infrastructure Construction
  • Large Facility Construction

Competitive Advantage

Strengths

  • Advanced tunnel excavation technology
  • Track record in large domestic and international projects
  • Diverse business portfolio
  • Capital and business alliance with Sumitomo Forestry
  • Stable financial base
  • Long-standing industry trust
  • Abundant R&D capabilities
  • Extensive domestic network
  • Well-equipped specialized personnel
  • Multinational project experience
  • Thorough safety management system
  • Environmentally responsive construction technology
  • Public works track record
  • Super high-rise building technology
  • Social reputation and awards

Competitive Advantages

  • Brand strength from global super high-rise building construction records
  • Technology reliability from Japan's largest-scale civil engineering experience
  • Risk diversification and revenue stabilization through diverse business expansion
  • Strengthening of wooden construction and real estate through collaboration with Sumitomo Forestry
  • Pioneer in advanced construction technologies such as shield tunnels
  • Strict safety and health management for accident prevention and trust building
  • Broad sales bases covering major domestic cities
  • Rich local networks in overseas operations
  • Sustainable innovation driven by technical research institute
  • Flexible design and construction capabilities tailored to customer needs
  • Deployment of decarbonization technologies and environmentally considerate construction
  • Strong financial position enabling handling of large projects
  • Long-term trust with government agencies
  • Construction management by experienced personnel
  • Order reception system for diverse construction works

Threats

  • Risk of rising construction material prices
  • Concerns over construction delays due to labor shortages
  • Cost increases from stricter environmental regulations
  • Instability in overseas political and economic conditions
  • Intense price competition with domestic rivals
  • Risk of project delays due to natural disasters
  • Industry structure changes from new technology introductions
  • Impact of public works budget cuts
  • Impact of exchange rate fluctuations on overseas revenue
  • Market competition from new entrants
  • Fluctuations in fund allocation to green investments
  • Profitability risks in large-scale projects

Innovations

2024: Progress in Linear Central Shinkansen Tunnel Construction

Overview
Demonstrated advanced tunnel construction technology through the Yamanashi Prefecture test line project.
Impact
Expansion of orders and improved technology evaluation

2023: Development of Advanced Shield Tunnel Technology

Overview
Revolutionized deep underground construction technology, achieving shorter construction periods.
Impact
30% improvement in construction efficiency

2022: Promotion of Environmentally Considerate Building Materials Adoption

Overview
Promoted use of recycled materials and development of energy-saving building materials.
Impact
Contribution to CO2 emission reductions

2021: Introduction of Digital Construction Management System

Overview
Enhanced quality and safety through AI and IoT-utilizing construction management.
Impact
20% reduction in construction errors

2020: Establishment of Technologies for Decarbonized Society

Overview
Developed low-carbon materials and energy-efficient construction methods.
Impact
Reduction of environmental impact at construction sites

Sustainability

  • Setting CO2 emission reduction targets at construction sites
  • Active utilization of renewable energy
  • Promotion of improved waste recycling rates
  • Strengthened labor safety and health management
  • Environmental conservation through coordination with local residents
  • Workplace improvements for promoting women's active roles
  • Strengthened environmental responsibility in supply chains
  • Active adoption of environmentally considerate materials
  • Environmental education programs for employees
  • Promotion of sustainable resource utilization
  • Expansion of investments in green construction technologies
  • Promotion of smart construction technology introduction