KUALA LUMPUR (Oct 11): Southern Cable Group Bhd is targeting RM100 million sales of cables and wires to the US in the financial year ending Dec 31, 2023 (FY2023).

In a statement on Tuesday (Oct 11), the cable and wire manufacturer said it will begin deliveries to a US-based cable and wire distributor in the fourth quarter of 2022.

It said the positive demand outlook for FY2023 is supported by an upcoming distributorship agreement from its US-based customer, following recent successful performance of trial orders.

Additionally, Southern Cable said it recently secured UL certification for its heat- and water-resistant industrial cables certifying conformity to US industry requirements, enabling the group to increase its customer base in the US.

Citing market research company Global Market Insights, Southern Cable said North America's cable and wire market size exceeded US$27 billion (RM126 billion) in 2020, and is projected to expand at a cumulative annual growth rate of 6% from 2021 and 2027 to reach US$44.5 billion.

In contrast, it said the Malaysian cable and wire market was valued at RM10.3 billion in 2019.

Southern Cable managing director Tung Eng Hai said gaining entry into a much larger foreign market than its current domestic reach boosts the potential addressable market.

“We are in the process of planning our production capacity for anticipated larger orders to the US next year, and are confident of expanding our US customer base, leveraging on our competitiveness and product quality.

“We also have the capability to produce cables and wires for wide-ranging sectors including power distribution, construction, telecommunication, and oil and gas,” he said.

Tung said Southern Cable has current orders in hand of more than RM800 million to be fulfilled for Malaysia and overseas customers until 2024.

He said the orders in hand include a RM294 million underground power cable supply contract secured from Tenaga Nasional Bhd, and RM12 million worth of purchase orders from its US-based customer.

At the midday break on Tuesday, Southern Cable dipped 1.43% or 0.5 sen to 34.5 sen with 258,800 shares done.