KUALA LUMPUR: Southern Cable Group Bhd aims to penetrate the United States market in the second half (2H) of 2022 and targets higher overseas revenue this year.
In a statement yesterday, the Kedah-based group said regional demand for cables and wires is set to improve in line with recovering economic activities.
Southern Cable recorded three consecutive quarters of export growth since mid-2021. The company topped RM7.2mil in the first quarter of this financial year, ending Dec 31, 2022 (FY22) on higher sales of power cables and wires to Myanmar and Singapore.
Managing director Tung Eng Hai said Southern Cable is conducting the final stages of testing and evaluating its XHHW-2 (cross-linked polyethylene high heat-resistant and water resistant) industrial cables for a customer in the US. It is used 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 tecond half of FY22,” he said.
According to Tung, the US market offers potential growth as players increasingly source from South-East Asia as part of their supply chain, following China’s Covid lockdowns and trade war uncertainties.
He said they had undertaken the necessary quality certifications to meet their requirements.
“Once the pilot is successfully completed, we will endeavour for this to be a first stepping stone towards even more distributorships and meaningful contributions in the future,” he added. — Bernama