Sustainability Top Message
Top Message
As a company that thrives and grows along with its stakeholders, we are contributing to society through our pioneering efforts, driven by our pride and passion for our work
The history of MIYAJI ENGINEERING GROUP (MEG) extends over a century, beginning with the creation of its core company, Miyaji Tekkojo in 1908. I would like to explain the difficulties that MEG has encountered during its history, which are inextricably linked to the nature of its business, so that you will have a better understanding of MEG.
Miyaji Tekkojo made plans to build a new plant in Hiroshima Prefecture, in preparation for a bridge construction project that aimed to connect the islands of Honshu and Shikoku, and invested significantly in the new plant’s construction. However, due to the oil shock in 1974, the plan to build the bridge was delayed indefinitely. This saddled Miyaji Tekkojo with significant debt, and left it with no choice but to scrap its plans to build the new plant, and to lay off roughly 500 employees. In addition, while Miyaji Kensetsu Kogyo had split off from Miyaji Tekkojo, becoming an independent company, an accident that occurred during a major construction project in 1984 left it facing bankruptcy. Furthermore, public works spending fell significantly from the 1990s onward, and in 2010 the company closed its Matsumoto Works, which had been in operation for 60 years. In 2011, the following year, Miyaji Tekkojo was merged with Miyaji Kensetsu Kogyo to form MIYAJI ENGINEERING. In order to survive and regain its position as one of the top companies in the industry, candidates were considered for an alliance, including a possible M&A: Mitsubishi Heavy Industries Bridge & Steel Structures Engineering (currently MM BRIDGE), which had been struggling to reestablish its bridge-building business. Like our company, it had once been an industry leader, and had a track record of building numerous long-span bridges, such as a bridge connecting Honshu and Shikoku. Mitsubishi Heavy Industries had long ago established a JV with Miyaji and Yokogawa for the construction of the Kanmon Bridge linking Honshu and Kyushu. When the bridge was opened in 1973, it was the longest suspension bridge in Japan and all of Asia. We had maintained a positive relationship with Mitsubishi Heavy Industries in the intervening years, and decided it that was the best choice for an alliance partner. Accordingly, MEG acquired 51% of the shares in MM BRIDGE, making it part of the Group and reinforcing its Group business structure. At the time, MIYAJI ENGINEERING was the 7th largest steel bridge manufacturer, with 4.3% of the market, while MM BRIDGE was the 8th largest, with 4.0% of the market. However, in the fiscal year ended March 31, 2022, the new company recorded ¥58.0 billion in sales, or roughly 3.3 times its sales at the time of the merger, and ¥5.8 billion in operating profit, for an increase of roughly 14.5-fold. Its market share also rose to over 10%.
The strengths of MEG
Just before the 1964 Tokyo Olympic Games, a symbol of Japan’s post-war recovery, MEG applied state-of-the-art design theory to construction of the Edobashi Junction, which was considered to be the most difficult section of the Metropolitan Expressway that was being constructed. On-site, thanks to the actions of its team of experts who had been involved in the erection of Tokyo Tower, it was able to use unprecedented construction techniques to complete its construction work, just as planned. Based on its experience, MEG engaged in joint research with Dr. Toshie Okumura of the University of Tokyo, publishing the paper, “The Design of Knee Joints for Rigid Steel Frames with Thin Walled Section” in 1968. Even now, over 60 years later, this paper continues to be an enduring and foundational part of the design of joints for rigid frame structures. These technologies were also linked to the bridge erection technologies used in the construction of the Kanmon Bridge during the early days of suspension bridge-building.
In the field of railroad bridges, MEG has taken part in the construction of countless projects requiring advanced construction technologies, such as for the Tokaido, Hokuriku, and Kyushu Shinkansen. It has also built structures with large interior spaces such as Tokyo Tower, Tokyo Skytree, and other iconic towers. It has worked on many projects involving special, extremely difficult construction such as the Tokyo Aquatics Center, where aquatics events were held during Tokyo’s second Olympic Games, Es Con Field Hokkaido, the home field for the Hokkaido Nipponham Fighters, and submarine tunnels (submerged caissons).
The strengths of MEG lie in its position as a comprehensive engineering company, seamlessly combining advanced technical capabilities that have been passed on through the years, highly experienced personnel, and partners with exceptional technical strengths.
Furthermore, in the event of natural disasters such as major earthquakes or heavy rains, MEG contributes to the rapid restoration of social infrastructure, day and night, in response to requests for support from the Ministry of Land, Infrastructure, Transport and Tourism, road administrators, and railroad operators.
Ideals and future direction
The two core operating subsidiaries of MEG are MYIAJI ENGINEERING and MM BRIDGE. We believe there is still tremendous potential for creating new synergies between these two companies. In this regard, we seize every available opportunity to foster a greater mutual understanding of their corporate cultures as a heavy machinery company and a specialized operator. We have striven to transform the mentalities of the employees in both companies, and to conduct business in a manner that is optimized for the Group through collaboration between the companies. However, we have not yet achieved our collaboration ideals. Going forward, we plan to actively promote the exchange of personnel between the two companies, while implementing specific initiatives to further reinforce each company’s strengths.
We will also implement plans to objectively identify areas of the two companies that are lacking compared to other companies, including those in other industries, with the aim of making steady improvements. In particular, we will focus on the hiring and promotion of female employees and foreign employees, investment strategies for achieving sustainable growth, and future-oriented investment. We are currently deliberating measures we can take to achieve carbon neutrality, which is one of our social responsibilities, so I’d like to explain these measures at a later date.
The hiring and promotion of female employees and foreign employees is a task that must be carried out actively, in order to meet the needs of the construction industry and of society as a whole. We are actively hiring female engineers and female operators, and developing them into powerful human resources. Introducing the sensibilities of other cultures provides major benefits in the form of invigorating the company and transforming the mentalities of the people within it. Accordingly, we are also actively hiring and promoting foreign employees.
In our investment strategies for achieving sustainable growth, we aim to achieve a dividend ratio of 30%, provided that there are no major reductions in public works like the one we experienced during the first oil shock, and there are no serious incidents that deal a major blow to our company’s management. Based on our dividend of ¥140 for the fiscal year ended March 31, 2022, we aim to maintain and improve our dividends, working toward our five-year Medium-Term Business Plan, under which we plan to issue ¥170 in dividends in FY2025 and ¥180 in FY2027. We will continue to enrich our explanations of our capital strategies, and to disclose non-financial information, as well. If we discover any information shortfalls, we will set targets and steadily expand our disclosures to meet them. We appreciate your understanding.
MEG has worked its way through dramatically changing times, to grow to where it is today. We will use the experience we have gained through our history to enrich our human resources and capital, in order to achieve further success. As a company that thrives and grows along with its stakeholders, we will contribute to society through our pioneering efforts, driven by our pride and passion for our work. We look forward to your continued understanding and support.