PETALING JAYA: Cable and wire manufacturer Southern Cable Group Bhd hopes to penetrate the US market in the second half of 2022 in line with its target for higher overseas revenue in the financial year ending Dec 31, 2022 (FY22).
Southern Cable managing director Tung Eng Hai indicated the potential growth in demand 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 completed, this would be a stepping stone towards more distributorships and contributions in the future.
“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 FY2022,” Tung said in a statement today.
Compared to ordinary cables, the XHHW-2 industrial cables offer stronger resistance to heat, water, and corrosion, as well as greater durability and flexibility.
Southern Cable registered exports growth since mid-2021 to reach RM7.2 million in the first quarter ended March 31, 2022 (Q1’22) on higher sales of power cables and wires to Myanmar and Singapore. It intends to fulfil RM628.6 million worth of orders in hand over the next two years, of which overseas represent less than 1%.
The group is ready to support the improved economic activity especially in existing markets of Myanmar and Singapore, as the pace of infrastructure and development projects accelerates.