Source disclosure: February 05, 2026
Kanadevia Corporation [7004.T]
TOKYO, Feb 05 (Pulse News Wire) – Kanadevia Corporation (7004.T) decided to withdraw from its bridge construction and maintenance business and cease operations at its Towajima factory after a board meeting today. The move comes amid declining domestic demand and intensifying competition, making stable orders difficult to secure.
The company's bridge division has been active since 1900, contributing significantly to numerous bridge projects worldwide. However, domestic new bridge construction peaked in 1995 and has steadily declined since, leading to significant reductions in project bids. As a result, the company found it increasingly challenging to maintain consistent operations at the Towajima plant due to the harsh economic environment. The Towajima factory, established in 1943, employs 157 staff members and specializes in steel bridge manufacturing and food processing inspection equipment. In the fiscal year ending March 2025, the bridge business accounted for ¥10.57 billion in revenue, representing 1.7% of consolidated sales.
Going forward, Kanadevia plans to halt new bridge-related business activities immediately and expects to complete production for existing orders by the end of the fiscal year. Full withdrawal from the bridge sector is anticipated by 2030 upon completion of ongoing site work. In addition, the company anticipates recognizing approximately ¥1.600 billion in impairment losses during the third quarter of the fiscal year ending March 2026, which will be recorded as extraordinary expenses. A revised forecast for the full-year performance will be detailed in a separate press release. Kanadevia stated that the decision aligns with its mid-term strategy "Forward 25," focusing on restructuring initiatives to optimize resource allocation across its portfolio and enhance long-term corporate value.
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