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Southern Cable eyes US market, higher overseas revenue this year

27/06/2022 02:10 PM

KUALA LUMPUR, June 27 (Bernama) -- Southern Cable Group Bhd aims to penetrate the United States (US) market in the second half (H2) of 2022 and expects to achieve a higher overseas revenue this year.

In a statement today, 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 exports growth since mid-2021 to reach RM7.2 million in the first quarter of this financial year ending Dec 31, 2022 (FY2022) on higher sales of power cables and wires to Myanmar and Singapore. 

Managing director Tung Eng Hai said the company is conducting the final stages of testing and evaluation for its XHHW-2 (cross-linked polyethylene high heat-resistant and water resistant) 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 H2 FY2022,” he said. 

According to Tung, the US market offers a lot of potential growth 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. 

He said Southern Cable has received numerous enquiries since mid-2020 from US distributors and has 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. 


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