AUGUST 19, 2016 — Singapore's Sembcorp Marine Ltd today reported that it has reached an agreement to acquire a i100% equity stake in LMG Marin AS ("LMG") for US$20 million.
LMG is a naval architecture as well as ship design and engineering house headquartered in Bergen, Norway, with offices in Poland and France.
Established in 1943, its extensive design and engineering portfolio spans floating structures, platforms and a wide variety of ship types, such as drillships; floating production, storage and offloading vessels (FPSO); floating storage and offloading vessels (FSO); offshore support vessels (OSV); LNG carriers; LNG-powered ships; car ferries; and cruise ships.
LMG originated several key designs adopted by Sembcorp Marine, including the next-generation Espadon drillship design; the FSO design used in the ongoing construction of the company's newbuild FSO for deployment in the U.K. North Sea; as well as the Gravifloat modular LNG and LPG platform solutions that are a cost-competitive alternative to FSRU, FLNG and land-based terminals. The Robusto FPSO hull design, customized for operation in Brazil and West Africa, is another notable LMG creation.
Following the acquisition, LMG will become an indirect wholly-owned subsidiary of Sembcorp Marine.
"Through the strategic acquisition of LMG, Sembcorp Marine further strengthens its intellectual property and knowledge to execute leading-edge design and engineering solutions for the global offshore and marine sectors," said Sembcorp Marine President and CEO Wong Weng Sun. "This in turn supports our ongoing efforts to move up the value chain so that we can compete better and do more for our customers and partners."