The increase is due to improved regional demand for cables and wires
CABLE and wire manufacturer Southern Cable Group Bhd is targeting higher overseas revenue for the year, in line with the improved regional demand for cables and wires.
The company has registered three consecutive quarters of exports growth since mid-2021 to reach RM7.2 million in the first quarter ended March 31, 2022 (1Q22), on higher sales of power cables and wires to Myanmar and Singapore.
As at March 31, 2022, Southern Cable is slated to fulfil RM628.6 million worth of orders in hand over the next two years, of which overseas represent less than 1%.
The group also hopes to penetrate into the US market in the second half of 2022 (2H22).
“We are ready to support the improved economic activity especially in our existing markets of Myanmar and Singapore, as they accelerate the pace of infrastructure and development projects,” Southern Cable MD Tung Eng Hai said in a statement today.
“Building on our strong track record in supplying power cables and wires, we are also undergoing final stages of testing and evaluation for our in-house developed XHHW-2 industrial cables for a customer in the US, for use in residential, commercial and industrial buildings.
“We delivered the trial products to the customer this month, and barring unforeseen circumstances, hope to sign a distributorship agreement in 2H22,” he added.
Tung indicated that the potential growth in demand for cables and wires from the US, as players increasingly sourced from South-East Asia as part of their supply chain diversification strategy, following China’s Covid-related lockdowns and trade war uncertainties.
“We have received numerous enquiries since mid-2020 from US distributors, and have undertaken the necessary quality certifications to meet their requirements. Once the pilot is successfully completed, we would endeavour for this to be a first stepping stone towards even more distributorships and meaningful contributions in the future,” he concluded. — TMR / graphic by TMR