KUALA LUMPUR: Cable and wire manufacturer Southern Cable Group Bhd (SCG) has secured a RM90.4 million contract to supply underground cables and conductors to Tenaga Nasional Bhd (TNB).
The new win by SCG's wholly-owned subsidiary, Southern Cable Sdn Bhd, follows the addendum contract of more than RM30 million secured in April 2023 and boosts the company's total contract value to TNB to RM422.5 million from RM332.1 million earlier.
SCG managing director Tung Eng Hai said this win further affirms the company's positive outlook on the demand for cables and wires on the back of Malaysia's power infrastructure needs and demonstrates TNB's trust in the company.
"With our long-established track record of serving the nation's renowned power utility companies, we are optimistic about securing more wins to fuel our growth while supporting the nation's infrastructure development," he said in a statement.
Sales of power cables and wires typically make up more than 80 per cent of the SCB's annual revenue.
From the financial year ended December 31, 2020 to 2022, sales of power cables and wires jumped from RM458.4 million to RM749.0 million, reporting a compounded annual growth rate of 27.8 per cent, in line with the nation's ramp-up infrastructure activities in the Covid-19 pandemic recovery phase.
Besides that, SCG is a registered supplier of cables and wires with TNB and has had a strong business relationship for the past 19 years.
Apart from TNB, SCG also supplies to other utility providers such as Sabah Electricity Sdn Bhd and Sarawak Energy Bhd.
The company's current orders in hand amount to RM692.7 million to be fulfilled until 2024.
The orders include power cables and wires, and related products and services, such as aluminium rods, and supply and installation of rectifier systems for the 5G network.