Our civil engineering business provides optimum design and execution technologies for new construction and maintenance of civil engineering structures that support social infrastructure, such as bridges, tunnels, railways and water and sewage facilities, all of which are indispensable to urban life.
Our strength lies in having the industry’s top experience in design and execution in prestressed concrete (PC) bridges. We provide high quality, durable and easy-to-maintain bridges by promoting technological development, including new structural forms or precasting for shorter construction periods and labor-saving execution. We are also developing social infrastructure using technologies and expertise supported by our wealth of experience in wide-ranging areas, including tunnels, dams, urban civil engineering, rivers, land development, and energy facilities. Moreover, we are increasing our share in a large-scale renovation project on an expressway, including PC floor slab replacement and tunnel repair.

We expect public works investments to move slightly upward in the civil engineering. In the domestic construction market, orders increase for largely renovating aging expressways, introducing four-lane and six-lane expressways, and building seawalls and river embankments with the policy effect based on Five-year Acceleration Measures for Disaster Prevention and Mitigation and National Resilience. Also, expecting large-scale civil engineering projects overseas, such as ODA, we continue to see them as growth markets. Conversely, we need to assess and respond to the situation. There are uncertain factors, especially in domestic private-sector capital investment, because nobody knows when the COVID-19 crisis ends. We also forecast increasing demand for renewable energy projects as a result of accelerating the global efforts to achieve carbon neutrality by 2050. Focusing on technological trends in storing hydrogen and ammonia, we recognize this market has potential for growth in the future.

We started fiscal 2020, the second year of the Medium-term Management Plan, with a target of 120.0 billion yen in total given the impact of the COVID-19 crisis. This target consists of 100 billion yen in Japan and 20 billion yen overseas. Orders received were domestic 109.2 billion yen and overseas 21.4 billion yen, totaling 130.6 billion yen and exceeding our target of 120.0 billion yen. Amount of completed work was 128.1 billion yen, greatly exceeding our target of 110.0 billion yen, driven by favorable progress with many domestic projects in hand. Gross profit of completed work was 13.2 billion yen.

Orders were postponed for some projects, and the period for applying for bidding was extended in the domestic civil engineering market due to the spread of COVID-19; however, they caused no significant impact. We successfully received a wide range of orders, including large-scale renovation projects centered on expressway companies, tunnel works ordered from the Ministry of Land, Infrastructure, Transport and Tourism, substructure construction, large-scale bridge construction on the Chuo Shinkansen, and tunnel lining and reinforcing works. Additionally, we are continuing our efforts in the renewable energy-related field, such as solar power generation and biomass power generation.

Orders for domestic public works projects are expected to remain at the same level as usual, and large-scale ODA projects are also planned overseas. On the other hand, private-sector projects are expected to decline due to the impact of COVID-19. In this market environment, our maximum priority by the end of the COVID-19 crisis is to protect the lives and livelihoods of not only the Company’s employees, but also those of the workers of partner companies at sites, their families, and all concerned. We have set strict rules as measures to prevent infection, and are continuing our production activities with everyone following these rules and no suspension of operations at sites. In fiscal 2021, we will work on the following two points as our "response to changes" for the future.