Ailing construction company Kumagai Gumi Co. plans to spin off its money-losing real estate business and carry out a massive restructuring in the hope of surviving as a slimmer company half its present size, industry sources said Friday.
Under the redesigned restructuring plan, Kumagai Gumi will steer clear of the real estate business, which has weighed heavily on the company's finances, and focus on still-profitable construction projects and civil engineering, the company's traditional strengths, the sources said.
But Kumagai Gumi issued a statement to deny similar press reports earlier in the day, saying, "The report is not true."