full Annual Report 2003(5.9

14
Macronix Fab-3 plant
in Hsinchu, Taiwan
Yamanouchi Pharmaceutical
Oklahoma plant in Norman, U.S.A.
OVERSEAS OPERATIONS
Kajima
Corporation
Since the Kajima Group took on the challenge of its first overseas
construction project, the Group has expanded its reach to more
than 50 countries. Kajima now maintains local subsidiaries and
affiliates, district offices, or other permanent presences in 22 countries,
with projects in 13 countries directly managed by Kajima
headquarters.
As the Kajima Group works to integrate overseas operations, the
subsidiaries and affiliates in Kajima’s main regions of operation —
the United States, Europe, Southeast Asia, and Taiwan — continue
to streamline corporate structure and enhance profitability to contend
with a dramatically changing market environment. At the
same time, they are focusing their efforts on increasing the volume
of contracts awarded by the leading local companies in these
regions. These efforts are driven by Kajima’s strategy of advancing
into new arenas to offset the decrease of foreign direct investment
by Japanese companies, which had been the principal pillar of
Kajima’s overseas sales. This approach enabled Kajima’s subsidiaries
and affiliates to post more than ¥100 billion in total new
contracts for the third consecutive year. Of the ¥102.7 billion in
new contracts, local non-Japanese companies placed more than
70%, demonstrating the steadily increasing localization of Kajima
Group operations.
In real estate development operations undertaken by subsidiaries
and affiliates, the Kajima Group is improving the return on investment
of the operating properties and working to reduce each company’s
indebtedness. On the other side of the equation, new
investments such as the development of distribution warehouse
facilities in the United States and Private Finance Initiative (PFI)
projects in the United Kingdom are being selectively undertaken in
line with profitability and risk management criteria.
Construction and Real Estate Development
Annual Report
2003
Department for Environment, Food
and Rural Affairs (DEFRA) office
building in Cambridge, U.K.