Sarawak Cable has Focused In On Singapore and Australia High-voltage Power Cables Markets

Sarawak Cable Bhd (SCB), which recently acquired Universal Cable (M) Bhd and Leader Cable Industry Bhd, has zoomed in on Singapore and Australia to push for the export of its newly launched 275-kilovolt (kV) underground high-voltage power cables.

Group managing director and chief executive officer Aaron Toh Chee Ching said Universal Cable, now an SCB wholly owned subsidiary, was the only company in Asean with the capability to produce the 275kV underground high-voltage cables. Universal Cable rolled out commercial production of the high-margin 275kV underground cables after having successfully type tested the new product last August.

"Our key markets for the 275kV underground cables are Singapore and Australian cities, which need to replace a lot of their 132kV cables that have become obsolete as demand for power increases with the 275kV cables. So, there is a huge market for 275kV cables and I see this as a niche market," he announced.

In Malaysia, Universal Cable's pilot project to install the 275kV cables is for Pengerang Power Sdn Bhd's transmission line project, which it was awarded for RM257mil recently.

He said one of the key considerations for SCB to acquire Universal Cable was the latter's manufacturing facilities for the 275kV underground cables that had involved big capital investments.

SCB has emerged as Malaysia's largest integrated manufacturer of power cables and conductors, with a market share of more than 50% after completing the acquisition of Universal Cable and Leader Cable for RM210mil in December 2014. The acquired companies also manufacture 500kV cables and telecommunications cables. The SCB group now owns and operates seven manufacturing plants in Selangor, Kedah, Johor and Negri Sembilan and two plants in Sarawak.

"The (power) infrastructure in Indonesia is lagging far behind, and Jakarta requires a lot of 132kV underground cables. We (SCB) may acquire an Indonesian cable manufacturer which we have identified to use as a base to expand our market and increase our presence there," he said, adding that the proposed acquisition might materialise this year.

Toh said the Middle East was the other market for underground and overhead transmission cables which SCB would further strengthen. "With increased capacity (post-acquisition), we have sufficient production capacity to supply the Singapore, Australian, Indonesian, the Philippines and the Middle-Eastern markets."

He said the group had targetted cable sales of RM1bil this year, with 80% of the production to cater for the domestic market and the other 20% for the export market. According to Toh, the group planned to relocate its Nilai manufacturing facilities to Sabah, where there is yet to be any power cable manufacturer, this year.

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