Establishment of Hokkaido Sekisui Heim Construction Co., Ltd. to Ensure a Sustainable Construction System

Sekisui Chemical Co., Ltd. Housing Company (President: Masahide Yoshida) will establish Hokkaido Sekisui Heim Construction Co., Ltd., its first construction platform company in the Hokkaido area, on July 1, 2026, as part of its efforts to address the severe labor shortage in the construction industry.

This new company will consolidate construction and construction management engineers previously dispersed among three companies—Hokkaido Sekisui Heim Co., Ltd., Hokkaido Sekisui Famies Co., Ltd., and Architec Planning Co., Ltd.—and will centrally manage construction management functions in the Hokkaido area, from the construction of new homes using steel-frame unit construction and wooden post-and-beam construction to the construction management of renovation work. Furthermore, in collaboration with construction subcontractors and other partners, it aims to establish a sustainable construction system for the entire region.

1. Background for Establishing the New Company

The construction industry in Japan is facing an increasingly severe shortage of engineers and skilled workers, driven by the declining working-age population and the "2024 Problem." Ensuring a sustainable construction system has become an urgent issue.

Within the Hokkaido area, our group has been committed to providing homes where customers can live with peace of mind for a long time, through Hokkaido Sekisui Heim Co., Ltd.'s provision of steel-frame unit homes "Sekisui Heim" and Hokkaido Sekisui Famies Co., Ltd.'s renovation business. To meet a wider range of customer needs, we welcomed Architec Planning Co., Ltd., which handles wooden houses, into our group in January 2026, promoting the creation of business synergies.

The establishment of this new company builds upon this business foundation by consolidating and integrating the construction management functions dispersed among the three companies. We aim to build an integrated construction system in collaboration with each company's construction subcontractors and with "Clareast Co., Ltd.," a general renovation company that joined our group in November 2024.

Through the establishment of the new company and the assurance of a sustainable construction system, we will contribute as a group to resolving the labor shortage and improving productivity in the construction industry throughout the Hokkaido area.

2. Three Objectives for Establishing the New Company

(1) Ensuring stable construction opportunities for construction subcontractors

We will consolidate the construction subcontractor networks built by each company to date and establish an efficient construction system. By integrating the management of new home construction and renovations, we will level out fluctuations in construction volume between busy and slow periods, creating an environment where construction subcontractors can secure stable construction opportunities throughout the year and establishing a system where they can continue to work with peace of mind for a long time.

(2) Further improvement of construction quality and promotion of multi-skilling

By consolidating construction and construction management engineers within our group, we will promote the sharing of construction know-how and enhance technical capabilities. Furthermore, we will actively promote the training of engineers capable of handling both steel-frame unit construction and wooden post-and-beam construction, thereby building a construction system that can flexibly respond to diverse construction methods and customer needs.

(3) Future Goal: Business expansion through undertaking construction work from outside our group and contributing to the region

In the future, we plan to utilize the construction capabilities and construction management functions accumulated by the new company to accept construction requests from outside our group. We aim to become an entity that supports home building in Hokkaido as a provider for the entire regional construction industry.

3. Future Schedule

After the establishment of the new company, we will promptly proceed with the procedures to obtain a specific construction business license, with full operations under the new system scheduled to begin in April 2027. We will strive to provide further value to our customers by building a solid construction foundation in the Hokkaido area.

[Reference] Overview of the New Company

Company Name: Hokkaido Sekisui Heim Construction Co., Ltd.

Location: 4-2-1, Kita 14-jo Nishi, Kita-ku, Sapporo, Hokkaido

Representative: Tetsuya Soma, President and Representative Director

Establishment Date: July 1, 2026

Capital: 80 million yen

Business Activities: Construction and renovation work, construction management, supervision, etc.

Shareholder Composition: Sekisui Chemical Co., Ltd. 100%

Number of Employees: Approximately 60 (planned)