Philippines LCS Group buys Korea’s special purpose vessel maker

The Philippines’ LCS Group of Companies bought a South Korean special purpose vessel maker as it aims to supply defense products to the Southeast Asian country.

LCS Group Korea, the group’s unit in the nation, said on Tuesday it acquired Vogo, which has provided 300 special purpose vessels so far, without providing further details such as the value of the takeover. Vogo has been designing and manufacturing submersibles, high-speed boats, aluminum bulletproof ships and others for navies and coast guards in various countries such as South Korea, India, the Philippines, Indonesia and Peru since 1998.

LCS Group formed a joint venture with Vogo in 2018 when the South Korean company signed a contract with the Philippine navy to supply 10 carbon composites fast boats. Vogo joined hands with the Philippine group for project finance for the deal.

“LCS Group aims to supply bulletproof products to the Philippines’ defense ministry in the future through the takeover of Vogo,” said LCS Group Korea CEO Noh Hyun Soo.

10-YEAR EXCLUSIVE SUPPLY DEAL

LCS Group Korea and Vogo are in talks with the Department of National Defense on the establishment of a factory in the Southeast Asian country and conditions on a 10-year contract for an exclusive supply of bulletproof products. The deal is expected to generate 30 billion won ($24.8 million) in sales a year.

Vogo, founded in 1981, was selected as a hydrogen mobility operator by a local government in South Korea, given its technology on special purpose vessels for the country’s navy.

The company is scheduled to test run the country’s first liquefied hydrogen ship in the second quarter for a project sponsored by the Ministry of SMEs and Startups, as well as a provincial government.

It also plans to manufacture and demonstrate two liquefied hydrogen fishing boats and one aluminum public vessel this year.

LCS Group has been cooperating with South Korean companies for various businesses. Its unit in the Northeast Asian country set up a JV with Bosung Powertec Co. for telecommunication tower projects in the Philippines in October last year. The group also signed a franchise contract with Korea’s Genesis BBQ, a global fried chicken franchise operating in around 60 countries, to open the business in the Southeast Asian nation.

It also agreed to join a $1.7 billion resort development project in South Korea with an investment of up to $100 million.

Write to A-Young Yoon at youngmoney@hankyung.com
Jongwoo Cheon edited this article.