Nippon Road

Basic Information

Stock Code
1884
Industry
Construction
Category Detail
Construction & Civil Engineering
Prefecture
Tokyo
Establishment Year
March 1929
Listing Year
October 1961
Official Website
https://www.nipponroad.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Mitsui Juken Road, Toa Road, Century Tokyu Construction, Nichireki Group, Chorei, Subaru Kogyo

Overview

Nippon Road is a leading company in the construction industry centered on road paving, founded in 1929, characterized by a stable management base from the Shimizu Construction group and diversified business development.

Current Situation

Nippon Road achieved consolidated sales of approximately 157.7 billion yen in the fiscal year ending March 2021, establishing a high position in the industry. Centered on its core road paving projects, it is advancing diversification into civil engineering, construction, sports facilities, and more. Shimizu Construction holds over 50% of the shares as the largest shareholder, ensuring a stable management base as a consolidated subsidiary. Overseas, it has subsidiaries in Thailand and Malaysia and is working to expand in overseas markets. Technologically, it focuses on innovations in road paving management and civil engineering, and is also engaged in environmentally friendly businesses such as environmental greening projects. Moving forward, it plans to leverage synergies with its parent company to expand orders both domestically and internationally while strengthening technological capabilities. From a sustainability perspective, it is enhancing initiatives for resource recycling and reducing environmental impact, aiming for sustainable growth. It will flexibly respond to changes in the market environment and steadily capture demand for domestic infrastructure maintenance and management.

Trivia

Interesting Facts

  • The predecessor of Nippon Road was Japan Bichumals Paving Industry Co., Ltd., founded in 1929.
  • In 1989, it established local subsidiaries in Thailand and Malaysia, starting overseas expansion.
  • It has a rare parent-subsidiary dual listing structure as a consolidated subsidiary of Shimizu Corporation.
  • It had a history of listing on the First Section of the Osaka Securities Exchange since 1971.
  • Nippon Road holds top-class technological capabilities and construction track record in the paving field.
  • Since its founding, it has consistently pursued innovations in road paving technology.
  • It attracts attention domestically and internationally for developing environmentally friendly paving materials.
  • Its capital exceeds 12.2 billion yen, which is large-scale in the construction industry.
  • It employs over 1,200 people on a non-consolidated basis, providing stable employment.
  • In recent years, it has focused on paving for sports facilities and environmental greening materials.

Hidden Connections

  • Receives strong support from Shimizu Corporation and closely collaborates with its parent to expand business.
  • Established overseas subsidiaries to build business foundations in Thailand and Malaysia markets.
  • Deeply involved in local governments' infrastructure development projects.
  • Holds influence in Japan's construction materials industry regarding recycled paving material technology.
  • Utilizes Shimizu Corporation's technological resources and expertise to achieve high-quality construction.
  • Sports facility paving business expanded through strengthened networks with schools.
  • With a long history, it is involved in developing industry standard specifications.
  • Promotes initiatives in environmental greening materials in collaboration with regional environmental conservation activities.

Future Outlook

Growth Drivers

  • Increasing demand for countermeasures against aging domestic infrastructure
  • Expansion of demand for eco-products due to strengthened environmental regulations
  • Increase in infrastructure development projects in overseas markets
  • Strengthening of synergies with Shimizu Construction Group
  • Improved construction efficiency through introduction of advanced technologies
  • Expansion of diversification in civil engineering and construction fields
  • Tailwinds from sustainability trends
  • Stable orders from expanded public works budgets
  • Increase in disaster reconstruction-related works
  • Growing demand for energy-saving and resource-saving materials

Strategic Goals

  • Expand domestic market share of low-environmental-impact paving materials
  • Achieve overseas sales ratio of over 20%
  • Improve productivity by 30% through construction industry DX promotion
  • Establish sustainable materials recycling system
  • Enhance brand value through strengthened coexistence with local communities
  • Become a leading company in disaster prevention and mitigation technology
  • Build stable revenue base by expanding diversified business ratio
  • Internal reforms toward zero emissions achievement
  • Strengthen labor environment improvements and talent development
  • Maximize utilization of group-wide synergies

Business Segments

Road Paving Construction

Overview
Provides road paving construction for public and private sectors, achieving long service life and safe road environments.
Competitiveness
High-quality paving construction provided through years of construction experience and technical expertise
Customers
  • Local governments
  • Ministry of Land, Infrastructure, Transport and Tourism
  • Private general contractors
  • Construction consultants
  • Public works contractors
Products
  • Paving construction services
  • Road repair and maintenance
  • Construction design support
  • Technical consulting

Civil Engineering and Construction

Overview
Engages in a variety of public and private projects in civil engineering and construction fields.
Competitiveness
Diversified technical capabilities and collaboration with Shimizu Construction Group
Customers
  • Local public entities
  • Housing manufacturers
  • Commercial facility operators
  • Infrastructure development companies
  • Public facility managers
Products
  • General civil engineering works
  • Foundation works
  • Construction works
  • Renovation works

Sports Facility Construction and Management

Overview
Provides paving and construction for sports facilities, creating safe and comfortable environments.
Competitiveness
Provision of specialized technology and environmentally friendly products
Customers
  • Local governments
  • School corporations
  • Sports club operators
  • Public sports facilities
Products
  • Sports paving construction
  • Facility foundation works
  • Maintenance services

Leasing and Real Estate Related Services

Overview
Offers leasing of construction equipment and various real estate-related services.
Competitiveness
One-stop services leveraging group synergies
Customers
  • Corporate entities
  • Local governments
  • Construction-related businesses
Products
  • Construction equipment leasing
  • Real estate management
  • Related services

Competitive Advantage

Strengths

  • Strong support system from Shimizu Construction Group
  • Long track record and expertise in road paving
  • Stable revenue base through diversification
  • Advanced technological capabilities and eco-material development
  • Stable order base and public works track record

Competitive Advantages

  • High overall strength through group collaboration
  • Top-class paving skills and quality control in Japan
  • Differentiation through development of environmentally friendly products
  • Creation of growth opportunities via overseas market expansion
  • Long-term customer relationships and trust building

Threats

  • Decline in domestic infrastructure investment leading to reduced orders
  • Rising raw material prices and supply instability
  • Increased costs due to labor shortages in construction
  • Intensified price competition with rivals
  • Burden of complying with stricter environmental regulations

Innovations

2023: Development of Environmentally Friendly Paving Materials

Overview
Developed new eco-friendly paving materials with low environmental impact and high durability.
Impact
Achieves compliance with environmental regulations and expanded adoption.

2022: Introduction of AI-Based Paving Management System

Overview
Introduced road paving deterioration prediction system using AI technology.
Impact
Promotes maintenance efficiency and cost reduction.

2021: Enhancement of Recycled Paving Material Utilization Technology

Overview
Advanced performance improvements in paving materials using recycled resources.
Impact
Strengthens contribution to a recycling-oriented society.

2024: Development of Disaster-Resistant Seismic Paving

Overview
Developed new paving technology resilient to earthquakes and natural disasters.
Impact
Expected to expand adoption through improved disaster response capabilities.

2020: Strengthening Business Expansion in Overseas Markets

Overview
Expanded business using subsidiaries in Thailand and Malaysia in Southeast Asia.
Impact
Contributes to increased overseas sales.

2023: Introduction of Labor-Saving Paving Construction Machinery

Overview
Introduced the latest paving construction machinery to improve work efficiency.
Impact
Achieves shorter construction times and reduced labor costs.

2022: Enhancement of Functionality in Environmental Greening Materials

Overview
Improved durability of environmental greening materials such as weed barrier sheets.
Impact
Leads to improved market competitiveness.

2021: Promotion of IT Integration in Leasing Business

Overview
Introduced IT for leasing equipment management to improve operational efficiency.
Impact
Achieves cost reduction and improved customer satisfaction.

2024: Initiation of Research on Next-Generation Paving Materials

Overview
Started development research on sustainable next-generation paving materials.
Impact
Expected to enhance future product competitiveness.

2023: Strengthening of Construction Safety Management System

Overview
Introduced safety management system using the latest technology.
Impact
Achieves reduction in industrial accidents and improved site safety.

Sustainability

  • Development of environmentally friendly paving materials
  • Expansion of recycled paving materials
  • Introduction of construction processes to reduce CO2 emissions
  • Participation in regional greening projects
  • Thorough labor safety and health management
  • Promotion of long-life public infrastructure
  • Strengthened site management to prevent water pollution
  • Thorough training for environmental regulation compliance
  • Energy reduction through energy-efficient equipment introduction
  • Promotion of waste recycling