Establishment of a New LCV (Life Cycle Valuation) Headquarters

Shimizu Corporation (President: Kazuyuki Inoue) established a new LCV* Headquarters on October 1. The LCV Headquarters will consolidate the BSP (Building Service Provider), infrastructure management, and energy management functions of post-construction facility management. The goal of this is to establish a stable profit base in the building stock management and sustainability business areas as key businesses specified in Midterm Management Plan 2014. LCV is the business concept of providing high-level technology and services to maximize the value of facilities and infrastructure over their life cycles. There is considerable latent demand in the management services segment over the life cycle of a building, beginning with Property Management (PM), Facility Management (FM), and Building Management (BM). Future growth in business opportunities is also anticipated in the area of maintenance of civil engineering infrastructure, asset management for local government agencies, and infrastructure management through public-private partnerships and concessions; and in the area of energy management such as utilizing renewable energy in power generation and the sale of electricity. Shimizu regards such changes in business scope and quality in the construction market as the advent of an opportunity to commercialize the LCV concept, and therefore decided to establish the LCV Headquarters.

The LCV Headquarters will be active in a broad range of businesses, beginning with the BSP business which provides total proposals, etc. for increasing value through facility operation and management services and renovation, to the public asset management business, the public-private partnerships and concession business for airports, hydropower generation, etc., the renewable energy power generation business, the low-carbon power retail distribution business, and the business of creating and providing new value for facilities and infrastructure. The LCV Headquarters consists of three core business divisions: BSP, Infrastructure Management, and Energy Management. A Solution Sales Division and Planning & Administrative Division have also been established. The three business divisions will work together to provide comprehensive services and solutions that include business participation and investment to the increasingly diverse and complex needs of customers and the community, by using ICT, IoT, and AI to achieve energy efficiency, zero carbon, disaster prevention and mitigation, and improvement in work and living environments, among other things.

With the establishment of the LCV Headquarters, the following functions will be transferred and integrated in LCV Headquarters: The current ecoBCP Business Promotion Dept., the New Business Promotion Dept.; and the Mechanical and Electrical Building Life Care Center and Healthcare PFI Business Promotion Division.

LCV: An abbreviation for Life Cycle Valuation