Kanadevia Corporation announced that its Board of Directors meeting resolved on February 5, 2026 to withdraw from its bridge construction business including new constructions and maintenances (hereinafter, the "Bridge Business") and to terminate operations at the Mukaishima Works. Reason for the Withdrawal from the Bridge Business and Termination of Operations at the Mukaishima Works: For more than 120 years, the company?s Bridge Business has engaged in the construction of numerous steel bridges both in Japan and overseas. However, the Japanese new bridge construction market has continued to contract since peaking in fiscal year 1995, and order volumes have declined significantly in recent years.
Amid these circumstances, competition has intensified further, making it difficult to maintain stable orders sufficient to ensure continued operations at the Works, resulting in a persistently challenging business environment. Based on these factors, the Company has determined that continued operation of Mukaishima Works is no longer feasible and has decided to withdraw from the Bridge Business. The Company has yet to determine the future utilization of Mukaishima Works site after operations cease.
Overview of the Bridge Business: Commencement of Business: 1900. Business Description: Design, Manufacture, Construction, and Maintenance of steel bridges. Net Sales: JPY 10,573 million (1.7% of consolidated net sales) (Fiscal year ended March 31, 2025).
Number of Employees: 239 (as of January 31, 2026). Note: Operating income for this business is managed together with other businesses and is not calculated on a standalone basis; therefore, it is not disclosed. Note: The above Number of Employees includes those of the Mukaishima Works.
Overview of the Mukaishima Works: Name: Mukaishima Works. Location: 14755 Mukaihigashi-cho, Onomichi, Hiroshima 722-0062, Japan. Commencement of Operations: 1943.
Business Description: Manufacture of Steel bridges and other steel structures; Manufacturing of Foreign substance separation equipment for food. Number of Employees: 157 (as of January 31, 2026). Schedule Going Forward: February 5, 2026 onward: Cessation of marketing activities for new projects related to the Bridge Business; Fiscal year 2026 (planned): Termination of operations at Mukaishima Works (after completion of work on existing orders); Fiscal year 2030 (planned): Withdrawal from the Bridge Business (after completion of on-site construction work for existing orders).
Treatment of Employees Assigned to the Bridge Business and Mukaishima Works: With respect to employees belonging to the Bridge Business and Mukaishima Works, the Company will ensure employment as a fundamental premise and will determine specific measures through consultation with the labor union. Response to Inappropriate Conduct: As announced in the (Progress of Disclosed Matters) Notice of Inappropriate Conduct at Our Mukaishima Works dated November 6, 2025, the Company will continue to conduct on-site inspections and follow-up monitoring in coordination with regular inspections, in consultation with road administrators, even after withdrawing from the Bridge Business.
