Japanese construction firm Kumagai Gumi launches Taiwan property development unit
TAIPEI, NNA – Japanese construction firm Kumagai Gumi Co. will strengthen its real estate development business in Taiwan by launching a local unit to meet demand while avoiding a slump in Japan.
Kumagai Gumi’s Taiwan unit Taiwan Kumagai Co. established the property arm with capital of 10 million New Taiwan dollars ($333,000) on Jan. 30, the Japanese firm said in a statement on Friday.
The parent company had been involved in the construction of landmark architectures such as Taipei 101 and prime high-rise condominiums in Taiwan for nearly 40 years, a Taiwan Kumagai official told NNA on Monday.
The official sees potential demand now for property development in Taiwan as a government-backed project aims to replace aging structures with new ones in the island’s north.
Kumagai Gumi is less optimistic about the construction market in Japan. It expects the market to shrink after the Summer Olympics in Tokyo in July, a parent company spokesman in the Japanese capital told NNA on Monday.
Kumagai Gumi aims to generate about 35 billion yen ($323 million) in revenue from overseas businesses in the fiscal year ending in March 2023, out of an anticipated 500 billion yen in total revenue that year, the parent company spokesman said.
The company expects revenue of about 10 billion yen from overseas markets in the fiscal year ending this month, out of 426 billion yen total, he added.
In another bid for the overseas market, Kumagai Gumi announced in early February that it had formed a joint venture with Japanese housebuilder Sumitomo Forestry Co. in Singapore to expand its Southeast Asia business. The venture will develop a high-rise condominium and commercial complex in Jakarta with Singaporean developer Sinarmas Land Ltd. and Indonesian plywood maker PT Alas Kusuma.