We are also eager to promote ZEB (Zero Energy Building) and ZEH (Zero Energy House) proposals for new construction and energy-saving proposals for existing buildings. A special focus, however, is the offshore wind power construction business, which we expect to contribute to consolidated results beginning in fiscal 2027. We will complement accumulated knowledge and technology in marine civil engineering and our own vessels with additional assets, namely, the construction of a self-propelled, cable-laying vessel—a growth investment—as well as procure a high-performance ROV trencher, building an organizational structure conducive to success in the offshore wind power construction business. By engaging in various emerging sectors such as cable-laying, we aim to cement our position as a front-runner holding a top share in this domain. In overseas markets, we will grow and expand our construction business, primarily in the Philippines, where we have a history of more than 50 years.factory exhaust gas and the atmosphere and immobilize it in water stored at marine final disposal sites drew high praise for innovation, timely importance, and co-creation features in the Aichi Environmental Innovation Project, an initiative organized by Aichi Prefecture. Our plan was adopted in September 2024. We hope that this technology will be widely accepted and implemented and thus contribute to realizing a carbon-neutral society. In the domestic building construction business, the market is booming with notable demand from the private sector. The Group boasts particular strengths in logistics facilities and production facilities, for which we have been able to raise profits through sustained sales activities with an emphasis on profitability. In addition, despite the impact of soaring construction material prices, we could balance client satisfaction with stable profits by honing our proposal-making skills and appropriately estimating risks. The construction market in Japan is enjoying a huge uptick in demand, buoyed by national resilience measures and national defense strategies, as well as the return of semiconductor production and other manufacturing operations to Japan. That said, the rapid population decrease is seriously affecting the labor-intensive construction industry. Challenges abound, especially enforcement of upper limits on overtime work and soaring construction material costs and labor costs, factors that will only compound the impact of a worsening labor shortage across the supply chain. In addition, domestic construction demand could suffer as the population shrinks. Given this situation, there is an increasingly urgent need to cultivate new markets. For our part, we see business opportunities in the trend toward achieving carbon neutrality and will focus on winning orders for GX- and EX (energy transformation)-related construction projects, including offshore wind power facilities, carbon dioxide capture and storage (CCS), and electric furnace conversion at steelworks. In the domestic civil engineering business, the order environment remains favorable, reflecting an increase in defense-related construction projects in line with a national defense strategy and disaster prevention and mitigation projects spurred by policies to strengthen national resilience to disasters. In Japan, 2024 actually opened with a disaster—the Noto Peninsula Earthquake—on January 1. The Company entered the area immediately after the earthquake, directing all-out efforts to emergency restoration of Wajima Port and returning other facilities to operation as quickly as possible. Going forward, we will take the lead in reconstruction efforts, fulfilling our social mission to expedite full-scale restoration in affected areas. In the private civil engineering sector, inquiries related to carbon-neutral projects have increased since the GX Promotion Act came into effect in June 2023, and environmental initiatives are gaining momentum. In this context, our proposal to build and implement a scheme using technology to capture CO2 from TOYO CONSTRUCTION I INTEGRATED REPORT 2024 The business environment surrounding the Toyo Construction Group remains brisk, fueled by a broadening range of new opportunities such as the trend toward carbon neutrality. Against this backdrop, we will robustly invest in facilities, equipment, and human resources to ensure sustainable growth and solve social issues through our business activities.Seeing market changes as opportunities, boldly taking on challengesSeeking to expand domain activities, including construction of carbon-neutral facilities17
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