In 2009, we mark our 170th year in business. In the 1950s, we were the first in Japan to construct a concrete dam and a nuclear reactor building. We also constructed Japan’s first skyscraper, the Kasumigaseki Building, in 1969, during the period of rapid economic growth. These are just some of the examples of our leadership in Japan’s construction industry. Today, we have a strong presence in numerous sectors including building construction in urban redevelopment and nuclear power plant construction.

This presence is the result of our ability to respond to the emerging needs of society and customers in new markets. Since becoming the first Japanese construction company to establish a technical research institute, we have constantly invested in research and technology development that looks ahead to the next generation. Thus, we have continuously created technologies essential for Japan to develop with the changing times. For example, we were first in the world to develop response-controlled structures, and have demonstrated leadership in areas including ultra-high-rise building technology and the shield tunnel method.

Now, to mark the 60th anniversary of its establishment, we are reconstructing our technical research institute. In April 2009, we finished construction of a new laboratory. The remaining construction is scheduled for completion in the fiscal year ending March 2012. When complete, it will be a world-class, leading-edge research and development base for the construction industry. In this and other ways, we are making strategic investments in research and development even in a challenging operating environment to strengthen our ability to win contract awards and achieve earnings growth through technological excellence.

Today, we must not only respond to customers needs for shorter construction periods and lower prices. We must also respond to social needs such as ensuring a sustainable society by reducing environmental burden. Recent technologies we have developed that are meeting the needs of society include the Kajima Cut & Take Down (KC&D) Method for dismantling buildings.

Going forward, we will reinforce our base for expanding earnings by constantly creating leading-edge technologies that meet the evolving needs of society.

In September 2008, we completed the demolition of our former head office buildings from the ground up using the KC&D Method for the first time in the world. In Japan, conventional demolition of high-rise buildings begins at the top floors and involves problems such as dust and noise. The KC&D Method, however, quietly dismantles buildings from the ground floor, which offers the following advantages:

1. Environment: Recycling building interior materials helps protect the environment. All demolition work in the KC&D Method takes place inside the building, thereby avoiding rain and increasing the recycling rate. Moreover, dismantling the building floor by floor decreases the amount of waste material at any given time, which facilitates separation and sorting. This also improves the recycling rate and promotes environmental protection.
2. Efficiency: Conducting demolition work on the ground floor improves the mobility of workers and heavy equipment.
3. Safety: Conducting demolition work on the ground floor enhances the safety of workers.

This breakthrough technology has attracted global attention and won many awards.

Demand is growing in metropolitan Tokyo and other major cities in Japan for reconstruction and redevelopment of ageing buildings constructed during the 1960-70s, a time of rapid economic growth. We see significant potential in the KC&D Method as an outstanding way to protect the environment, increase safety and lessen noise even for demolition work in densely built areas in Tokyo.