Toa Corporation

Basic Information

Stock Code
1885
Industry
Construction Industry
Category Detail
Construction & Civil Engineering
Prefecture
Tokyo
Establishment Year
January 1920
Listing Year
September 1961
Official Website
https://www.toa-const.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Ando Hazama, Taisei Corporation, Obayashi, Shimizu Corporation, Haseko Corporation, Kajima, Nishimatsu Construction, Toda Corporation, Kumagai Gumi, Toa Road, Toyo Construction, INFRONEER HOLDINGS

Overview

Toa Corporation is a comprehensive construction company founded in 1920, with strengths in marine civil engineering, and an established firm actively engaged in infrastructure development and overseas business expansion.

Current Situation

Toa Corporation recorded consolidated sales of approximately 190 billion yen and operating profit of approximately 8 billion yen in the fiscal year ending March 2020, making it a major domestic player in the marine civil engineering sector. It has strong track records mainly in reclamation, revetment works, and port facility construction, while developing overseas markets centered on Southeast Asia. Although a construction defect issue was revealed in 2016, repair works were completed by the end of 2020, and the company is working to restore trust. In addition, it is focusing on SDGs initiatives and work-style reforms for employees to promote sustainable corporate operations. Positioned as a mid-tier general contractor compared to major competitors, it leverages its unique technological capabilities and ground improvement expertise, and is advancing brand enhancement strategies to secure new projects. Starting in 2023, it began airing TV commercials to boost awareness and attract talent. Moving forward, it aims to expand its business, riding the tailwinds of aging infrastructure and increasing demand for port maintenance.

Trivia

Interesting Facts

  • Historic construction company established as a corporation in 1914
  • Inherits the Asano Zaibatsu lineage, with company emblem of three cranes derived from Tsurumi, the founding location
  • 2016 construction defect issue attracted significant social attention
  • Head office located in Shinjuku Park Tower, holding an urban image
  • Possesses top-class domestic track record and technology in marine civil engineering works
  • Continuing to enhance technology and reliability even after ground improvement defect issue
  • Engaging in awareness improvement via TV commercials since 2023
  • Port facility repairs and seismic works are also important business areas
  • Related company Tsurumi Rinko Railway, also engaged in real estate
  • Has an in-house mascot character called 'Toa Boy'
  • Founded as a Tokyo Bay reclamation company, involved in large-scale port development
  • Fully subsidiary-ized Tsurumi Rinko Railway in 2011
  • Team derived from Toa Corporation soccer club existed but now unrelated
  • Expanding business with bases mainly in Southeast Asia overseas
  • Differentiates with unique technology as a mid-tier in Japan's general contractor industry

Hidden Connections

  • Toa Corporation's founding is directly linked to Asano Zaibatsu's port reclamation business
  • The three cranes in the company emblem symbolize founding supporters Asano, Shibusawa, and Yasuda
  • Changes in the legal status of Tsurumi Rinko Railway connect to related subsidiary's real estate business
  • The construction defect incident is known as a historic case of administrative sanction by the Ministry of Land, Infrastructure, Transport and Tourism
  • TV commercial strategy for awareness improvement is an unusual PR measure for a mid-tier general contractor
  • Business collaborations and share relationships with peers like Toa Road Corporation and Ando Hazama
  • Port reclamation technology since founding has greatly contributed to land formation in Tsurumi district
  • Technologies honed in construction fields are utilized in real estate management by Toa Real Estate

Future Outlook

Growth Drivers

  • Increasing repair demand from aging port infrastructure
  • Expansion of overseas infrastructure development centered on Southeast Asia
  • New project creation from spread of environmentally considerate technologies
  • Strengthened disaster prevention infrastructure by local governments
  • Efficiency and high-quality construction through construction DX
  • Technology development for sustainable society
  • Improved talent acquisition through work-style reform responses
  • Promotion of government public investment policies
  • Construction technology innovations corresponding to decarbonization
  • Trust acquisition through strengthened regional collaborations

Strategic Goals

  • Achieve over 200 billion yen in sales both domestically and internationally
  • Expand technology market share in marine civil engineering
  • Establish complete guarantee system for construction quality
  • Build construction processes aiming for 50% CO2 emission reduction
  • Secure diverse talent and create comfortable work environments
  • 40% improvement in business efficiency through DX promotion
  • Grow overseas business sales ratio to over 30%
  • Build sustainable collaboration system with local communities
  • Systematize and strengthen environment/safety training programs
  • Lead compliance and governance within the industry

Business Segments

Port and Marine Infrastructure Business

Overview
Provides comprehensive construction services for the development and maintenance of ports and marine infrastructure.
Competitiveness
Advanced marine civil engineering technology and over 100 years of track record
Customers
  • Local Governments
  • Ministry of Land, Infrastructure, Transport and Tourism
  • Port Management Companies
  • Marine Development Companies
Products
  • Reclamation Works
  • Breakwater Construction
  • Revetment Works
  • Port Improvements
  • Submarine Tunnels
  • Ground Improvement Works

Building Construction and Repair Business

Overview
Handles new construction, repairs, and seismic strengthening of urban buildings as main operations.
Competitiveness
Construction management integrating environmental considerations and cutting-edge technology
Customers
  • Real Estate Developers
  • General Contractors
  • Commercial Facility Operators
  • Public Facility Managers
Products
  • Commercial Facility Construction
  • Office Building Construction
  • Seismic Retrofitting
  • Renovation Works

Ground Improvement and Safe Construction

Overview
Specializes in ground improvement works essential for securing the safety of structures.
Competitiveness
High reliability through construction data management
Customers
  • Construction Companies
  • Infrastructure Contractors
  • Public Project Clients
Products
  • Ground Improvement Technology
  • Liquefaction Prevention Works
  • Soil Improvement
  • Safety Management Systems

Competitive Advantage

Strengths

  • Excellence in marine civil engineering technology
  • Over 100 years of rich track record and trust
  • Overseas expansion capabilities including Southeast Asia
  • Strong ground improvement technology
  • Specialized know-how in port infrastructure
  • Strong relationships with government agencies
  • Solid financial base
  • Compliance enhancement initiatives
  • Training system for specialized engineers
  • Introduction of sustainable construction technologies

Competitive Advantages

  • Leading domestic technology specialized in marine civil engineering
  • Practical know-how leveraging the founding Tsurumi district
  • Advantages from early market entry in Southeast Asia
  • Focus on trust recovery and transparency improvement after construction defect issue
  • Technological capabilities for complex ground improvement methods
  • Differentiation through environmentally considerate construction methods
  • Extensive port facility construction track record as sales strength
  • Stability in continuously securing government projects
  • High-quality construction through technological innovation and employee training
  • Management policy emphasizing sustainability

Threats

  • Risks from fluctuations in public works budgets
  • Intensifying competition with major general contractors
  • Delays in responding to rapid advancements in construction technology
  • Impacts from strengthened environmental regulations and laws
  • Risks to technology succession due to talent shortages
  • Business continuity risks during disasters
  • Image damage from construction defects
  • Overseas business risks from international situation changes
  • Rising material prices
  • Increasing labor costs

Innovations

2023: Development of Environmentally Considerate Ground Improvement Technology

Overview
Practicalized a new method aimed at resource savings and CO2 emission reductions, contributing to lower environmental impact.
Impact
Received high evaluations in sustainability assessments

2022: DX-Driven Overhaul of Construction Management System

Overview
Achieved efficiency in construction quality management and improved transparency through digital technology utilization.
Impact
Realized shortened construction periods and cost reductions

2021: Introduction of Latest Methods for Submarine Tunnel Works

Overview
Applied new excavation technology superior in safety and period shortening to port projects.
Impact
Improved customer satisfaction and enhanced competitiveness

2020: Complete Resolution of Construction Defect Issue

Overview
Completed defect repairs on ground improvement works and worked on corporate transparency and trust recovery.
Impact
Lifted suspension on public works bidding, restored credit

Sustainability

  • Development of construction technologies aligned with SDGs goals
  • Shift to construction methods contributing to CO2 emission reductions
  • Promotion of diverse work styles for employees and health management
  • Waste reduction measures to lessen environmental impact
  • Business development conscious of coexistence with local communities
  • Formulation of sustainable material procurement policies
  • Thorough safety-first construction management
  • Active recruitment and training of female engineers
  • Energy-saving infrastructure development through technological innovation
  • High transparency information disclosure and accountability