/Construction Buisiness

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Domestic Operations

During fiscal 1999, competition in the domestic construction market intensified further due to the persistent economic recession. The government's budget for public works has reached its upper limit and many private-sector clients have been facing severe competition. Although public works spending is projected to show a slight year-on-year rise during fiscal 2000, private-sector capital investment is likely to continue declining over the short term due to such factors as stock adjustments in the manufacturing industry. It is expected that a recovery in such investment will require some time. Kajima has recognized that the current severity of competition in Japanese construction markets is not a temporary phenomenon and that the construction industry is undergoing a critical period of transition. Taking these market conditions into account, Kajima has begun implementing a new three-year management plan. During fiscal 1999, which was the first year of the new plan, the Company exceeded its ambitious target for operating income and also achieved such goals as those for restructuring administrative departments and selling underutilized assets. As Kajima was not able to reach its crucial goal for new contract awards last year, increasing new sales has become the top priority among operational goals for fiscal 2000. Kajima has taken additional measures to promote the expeditious achievement of this goal. Kajima is currently directing Companywide marketing efforts at such growth fields as public-sector environmental and energy-related projects as well as private-sector housing projects. The Company is giving particular attention to design-build projects utilizing its own unique technologies such as wastewater-treatment facilities that incorporate egg-shaped, prestressed concrete septic tanks, energy storage tanks, and the Super-RC Frame structure for high-rise housing facilities. New Building Construction Contract Awards : Maruito Sapporo Building High-rise multifunctional tower including offices, a hotel, and a wedding facility--Concrete-filled steel structure; 22 floors above ground and 3 below; Floor area: 54,045m2 Yamagata Central Hospital Large-scale general hospital established by the government of Yamagata Prefecture--SRC structure; 11 floors above ground; Floor area: 61,335m2; Number of beds: 660 Tokyo Stadium Multipurpose stadium suitable for track-and-field, soccer, and other events--Site area: 177,460m2; Floor area: 85,846m2; SRC structure with cable-supported roof over seating area; Seating capacity: approx. 50,000 people NHK Broadcasting Technical Research Institute Facility for developing sophisticated new broadcasting technologies and training broadcasters--SRC structure; 14 floors above ground and 2 below; Floor area: 46,097m2 Saitama Shintoshin Building Superhigh-rise office tower 168.3m tall--Steel structure; 35 floors above ground and 3 below; Floor area: 82,061m2 | Next |

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