Cable and wire manufacturer Southern Cable Group Berhad’s wholly-owned subsidiary Southern Cable Sdn Bhd has secured a Letter of Award from Tenaga Nasional Berhad to supply RM293.8 million worth of underground cables and conductors to the national utility giant.
The Group’s largest contract to date entails Southern Cable will be delivering low and medium-voltage underground cables and conductors to TNB’s Distribution Network Division over a one-year period from July 2022, with the option of a one-year extension. Prior to this, Southern Cable had obtained similar LOAs from TNB since 2019.
The new LOA will add to the group’s order book reaching RM816.3 million, to be fulfilled by 2024. The orders in hand comprise RM466.7 million from long-term contracts, as well as short-term unbilled purchase orders amounting to RM349.6 million.
Close to 90% of Southern Cable’s revenue in 2021 was derived from power cables and wires, which are supplied to utilities providers such as TNB; resellers; engineering, procurement, construction, and commissioning (EPCC) contractors, and others.
Apart from manufacturing and supplying power sector cables, the company also produces and supplies communications cables and wires for the telecommunications sector, and control and instrumentation cables and wires used in manufacturing and processing industries. Tung further commented: “Overall, the recovery in economic activities in Malaysia bodes well
for us. We anticipate higher orders from various industries going forward, including telecommunications, and construction & infrastructure, as companies embark on systems upgrades and/or expansions to equip themselves for the next growth phase.
“Our integrated facilities and internationally-certified cables and wires are supported by a strong distribution network, which helps us cater to any industry nationwide in a timely manner. We are optimistic about our prospects ahead.”
