Southern Cable Group Bhd managing director Tung Eng Hai
KUALA LUMPUR: Southern Cable Group Bhd
is targeting higher overseas revenue in the financial year ending Dec 31, 2022 (FY22) on the back of improving regional demand in line with recovering economic activities.
As at March 31, Southern Cable is slated to fulfil RM628.6mil worth of orders in hand over the next two years, of which overseas represent less than 1%.
In a statement, the cable and wire manufacturer said it also hopes to penetrate into the United States market in the second half of 2022.
Managing director Tung Eng Hai said the group is ready to support the improved economic activity, especially in the existing markets of Myanmar and Singapore, as they accelerate the pace of infrastructure and development projects.
“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 the second half of FY22,” he said.
Tung indicated the potential growth in demand for cables and wires from the US, as players increasingly source from Southeast 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 added.
