Examples of Our Value Creation Model
Example [2] Housing Remodeling

Renovation of existing houses to extend useful life
by improving functionality
Key issues with the housing stock
Extended useful life through improved functionality
Earthquake-proofing and seismic retrofitting
Revised floor plans to suit changing lifestyles
Reduced environmental impact
Reduced waste by leaving main structural components intact to lower
CO2 emissions and improve energy-saving functionality
Renovation of traditional-style houses harmonizes thecityscape
Traditional-style house exteriors left in place, harmonizing with otherhomes in the community; interiors modernized to match current
lifestyles• Shorter life cycle than houses in Europe
and the U.S.

Through the Shinchiku• Insufficient earthquake resistance andinsulation

Sokkurisan remodeling:• Mismatches between lifestyles and floor plans• Environmental impact from waste
generated when rebuilding■ Social issues concerning houses in Japan
Although the penetration rate of earthquake resistant houses in Japan is increasing every year, there are still many houses with low earthquake
resistance. Moreover, the lives of houses in Japan are relatively short compared with those in Europe and U.S. and the short rebuilding cycle has emerged
as an issue in contemporary Japan. Waste from the demolition of houses accounts for a large share of waste discharged by the construction industry. It iscalled for that lives of houses should be extended to facilitate the shift to a stock-type society where houses could be used by successive generations.
1 Earthquake-resistance of housing stock

2 International comparison of the averageage of houses*Approx.

Without earthquake
resistance
7 million units*
With earthquake
resistance
6.1 million units*1981 or earlier

The Shinchiku Sokkurisan remodeling business was launched after the Great Hanshin Awaji Earthquake of 1995 with the desire to renovate
existing houses to make them earthquake resistant without the high cost of rebuilding. Based on our concept of safe and secure housing, it boasts
the industry’s foremost track record for full remodeling featuring earthquake reinforcement work and a clear fixed-price system. It marked its 25th
anniversary this year, since its launch in 1996, and the cumulative total of units contracted exceeded 150,000 units (as of June 30, 2021). Today,the Shinchiku Sokkurisan has become so popular across the nation that it is a brand synonymous with full remodeling. By leaving main structuralcomponents intact and improving housing functionality without rebuilding, the Shinchiku Sokkurisan remodeling contributes to not only
extending the useful lives of existing houses, but also to addressing the social issues concerning houses in Japan by being environmentallyfriendly, i.e., minimizing industrial waste, CO2 emissions, and waste of resources.

The desire for safe and secure housing

AfterBefore

Many houses were destroyed and many precious lives were lost in the Great Hanshin
Awaji Earthquake of 1995. Subsequent research revealed that many old houses wereleft without rebuilding, despite having structural problems, due to various reasons
including costs.
The Shinchiku Sokkurisan remodeling was bornfrom the desire to “find a way to make suchhouses earthquake-resistant at a reasonable
price without rebuilding in order to save
precious lives.” As such, it offers a full lineup from“full remodeling” to “partial reform” to transforma house into a safe and earthquake-resistant one,
A house destroyed in the Great Hanshin
according to the customers’ various needs andAwaji Earthquake, photographed bybudget, at about 50-70% of the cost of rebuilding. Professor Kenji Miyazawa(Years)

From 1982 onward
With earthquake
resistance
40.5 million units*Demolition
House: 7,750(51% of thedischarged waste
through demolition)








Building Work/Renovation
Private Sector CivilEngineering(Unit: thousand tons)

Repair 

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From 1982
onward

3 Breakdown of construction wasteJapanUSUK
Total: 

Public SectorCivil EngineeringSources: 1 Ministry of Land, Infrastructure, Transport and Tourism“Progress of Earthquake Proofing of Houses”
2 Ministry of Land, Infrastructure, Transport and Tourism“International Comparison of Average Age of Houses Deregistered in 2018”
3 Ministry of Land, Infrastructure, Transport and Tourism “Residential Land Session, Panel on Infrastructure Development (36th) ”■ Shinchiku Sokkurisan initiatives concerning social issues
Extending the useful lives of houses through seismic reinforcement
Shinchiku Sokkurisan offers proposals for improving the house’s functionality to make it earthquake resistant without
rebuilding mainly through seismic reinforcement work based on earthquake resistance diagnosis that meets thegovernment’s safety standards.
Moreover, in the Kumamoto Earthquake of 2016, a series of powerful tremors caused the collapse of houses
previously considered not to need seismic reinforcement under current laws. In view of such circumstances, wedeveloped a proprietary method to counter such a series of powerful tremors. With the addition of this new method,
we now offer seismic reinforcement and damping plans suitable for houses of all ages.
We are promoting houses where people can continue to live in with peace of mind by improving the safetyfunctions through this reinforcement work.

Solution for rapidly
increasing disused houses
The high number of disused
detached houses has become asocial issue in Japan. Throughremodeling, turning them intosocial welfare centers, sharehouses, travelers’ inns, etc., wecontribute to utilization of existinghouse stocks and support safe andsustainable city.

Contributing to the reduction of the environmental impact
Shinchiku Sokkurisan remodeling contributes to the reduction of the environmental
burden by extending the life of the house through earthquake reinforcement while theprincipal structural elements of the house are retained, thus minimizing industrial
waste discharge, CO2 emission, and waste of resources, compared to the demolition
involved in building a new house.

Home interior stripped down to its
main structural elements

After

Revised floor plans to suit changing lifestyles
In addition to seismic reinforcement, Shinchiku Sokkurisan offers remodeling thatmakes living comfortable, with thermal insulation, waterproofing, barrier-free design,
etc. Furthermore, in response to changes in family structures and aging population, weoffer solutions customized for the lifestyles without rebuilding, such as layout changes,
extensions, downsizing, transformation of a two-story house to a one-story house, or a
two-family house.

Before