Sarawak Cable powers up operations in bid to keep up with SCORE

There are busy days ahead for Sarawak Cable Berhad, as it actively pursues a number of ambitious projects, signing MoUs with major Indian and Chinese companies and preparing itself to play an integral part in SCORE.

Sarawak Cable Berhad is emerging as an aggressive and dynamic power company in Sarawak as it secures important strategic tie-ups with influential partners and seeks to diversify operations.

Sarawak Cable has existed since 1998 and has steadily built up a solid reputation in the manufacturing and trading of power cables and wires as well as installing transmission lines.

The Kuching-based company recently announced on Bursa Malaysia (Malaysian Stock Exchange) that it signed a memorandum of understanding (MoU) with Sinohydro Corp Sdn Bhd and India’s KEC International to jointly prepare proposals for power transmission projects in Malaysia.

Industry analysts believe the move will strengthen Sarawak Cable’s position as a leading integrated power solutions provider in Malaysia’s largest state. The company is also looking to bid for potential projects worth more than RM1 billion while expanding into overseas markets such as Brunei, Kalimantan and the Philippines.

In addition, Sarawak Cable is keen to diversify its operations by manufacturing hybrid power inverters as part of the state government’s Rural Electrification Scheme (RES) and building sub-stations via joint ventures with strong partners.

Sarawak Cable Berhad’s CEO and Managing Director Aaron Toh said the company was bidding for transmission line projects put up for tender by the state’s other big power firm, Sarawak Energy Berhad.

“Sarawak Energy Bhd is currently inviting open tenders for the supply of cables for transmission lines related to the Murum Dam and also from Tudan, Miri to Kuala Belait in Brunei,” said Toh. “Our company will be looking at such opportunities favourably as they are a core part of our business operations.”

Sarawak Cable is also upgrading its hardware to meet the demands of more projects as a result of the Sarawak Corridor of Renewable Energy (SCORE) programme. The company is procuring more machinery from funds set aside after their recent IPO.

Toh expects SCORE to drive the company’s business activities, especially with the expected increase in demand for its aluminium bare conductors.

“As SCORE will concentrate on many heavy industries requiring power, our company is in line to be a direct beneficiary of these activities due to the nature of our business operations,” said Toh.

He also assured retail investors that Sarawak Cable would be run efficiently, highlighting its track record in which it issued a dividend per share of 5 sen, representing a dividend yield of 10 per cent in the last fiscal year.

The RES project, part of a National Key Result Area under the Government Transformation Programme, involves hybrid power inverters design to benefit rural communities.

The inverters switch to a diesel generator once the solar power in the batteries is used up.

“We are looking at a system where the generator component should only make up 30 per cent of the overall usage,” Toh was quoted as saying, adding that the market in West Malaysia was almost saturated because it was 95 per cent electrified, unlike Sarawak and Sabah.

“There is a lot of room for growth in the East Malaysian market,” he said.

The tie-up with KEC and Sinohydro is significant. Media reports indicate KEC is one of the largest integrated power transmission EPC companies in the world, having successfully completed transmission-related projects in more than 40 countries. The group has a market capitalisation of US$386 million.

It is also the second-largest maker of transmission towers in the world, with a capacity of 310,000 tonnes. Under its expansion programme, KEC acquired SAE Towers in September 2010 with an annual capacity of approximately 100,000 tonnes. China’s Sinohydro is an engineering giant with a wide range of expertise, including in the power sector. It is ranked No.6 in China in turnover, with total sales of over US$14 billion in 2010.

Overseas projects accounted for 27 per cent or approximately US$4 billion of group revenue in 2010 and from this, energy and water-related sectors made up 43 per cent.

Sinohydro has also been focusing on energy-related projects, successfully installing 20,000 megawatts of power plants, including the Yangtze Three Gorges, Jingping Hydropower station, Sudan Merowe Hydropower project and the 2,400MW Bakun Hydroelectric dam in Sarawak.

Sarawak Cable’s decision to partner with the two mega-companies only strengthens its capabilities, position and reputation in Sarawak.

If that’s not enough, Sarawak Cable is also aggressively seeking acquisitions.

They have proposed to acquire a 65 per cent share in Trenergy Infrastructure Sdn Bhd, which is involved in the trading of cables, wires, conductors, steel towers and poles. It also wants to acquire the remaining 25 per cent it does not already own in Sarwaja Timur Sdn Bhd, which makes steel towers.

“We want to be prepared for future deployments,” said Toh.

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There are busy days ahead for Sarawak Cable Berhad, as it actively pursues a number of ambitious projects, signing MoUs with major Indian and Chinese companies and preparing itself to play an integral part in SCORE.

There are busy days ahead for Sarawak Cable Berhad, as it actively pursues a number of ambitious projects, signing MoUs with major Indian and Chinese companies and preparing itself to play an integral part in SCORE.

Sarawak Cable Berhad is emerging as an aggressive and dynamic power company in Sarawak as it secures important strategic tie-ups with influential partners and seeks to diversify operations.

Sarawak Cable has existed since 1998 and has steadily built up a solid reputation in the manufacturing and trading of power cables and wires as well as installing transmission lines.

The Kuching-based company recently announced on Bursa Malaysia (Malaysian Stock Exchange) that it signed a memorandum of understanding (MoU) with Sinohydro Corp Sdn Bhd and India’s KEC International to jointly prepare proposals for power transmission projects in Malaysia.

Industry analysts believe the move will strengthen Sarawak Cable’s position as a leading integrated power solutions provider in Malaysia’s largest state. The company is also looking to bid for potential projects worth more than RM1 billion while expanding into overseas markets such as Brunei, Kalimantan and the Philippines.

In addition, Sarawak Cable is keen to diversify its operations by manufacturing hybrid power inverters as part of the state government’s Rural Electrification Scheme (RES) and building sub-stations via joint ventures with strong partners.

Sarawak Cable Berhad’s CEO and Managing Director Aaron Toh said the company was bidding for transmission line projects put up for tender by the state’s other big power firm, Sarawak Energy Berhad.

“Sarawak Energy Bhd is currently inviting open tenders for the supply of cables for transmission lines related to the Murum Dam and also from Tudan, Miri to Kuala Belait in Brunei,” said Toh. “Our company will be looking at such opportunities favourably as they are a core part of our business operations.”

Sarawak Cable is also upgrading its hardware to meet the demands of more projects as a result of the Sarawak Corridor of Renewable Energy (SCORE) programme. The company is procuring more machinery from funds set aside after their recent IPO.

Toh expects SCORE to drive the company’s business activities, especially with the expected increase in demand for its aluminium bare conductors.

“As SCORE will concentrate on many heavy industries requiring power, our company is in line to be a direct beneficiary of these activities due to the nature of our business operations,” said Toh.

He also assured retail investors that Sarawak Cable would be run efficiently, highlighting its track record in which it issued a dividend per share of 5 sen, representing a dividend yield of 10 per cent in the last fiscal year.

The RES project, part of a National Key Result Area under the Government Transformation Programme, involves hybrid power inverters design to benefit rural communities.

The inverters switch to a diesel generator once the solar power in the batteries is used up.

“We are looking at a system where the generator component should only make up 30 per cent of the overall usage,” Toh was quoted as saying, adding that the market in West Malaysia was almost saturated because it was 95 per cent electrified, unlike Sarawak and Sabah.

“There is a lot of room for growth in the East Malaysian market,” he said.

The tie-up with KEC and Sinohydro is significant. Media reports indicate KEC is one of the largest integrated power transmission EPC companies in the world, having successfully completed transmission-related projects in more than 40 countries. The group has a market capitalisation of US$386 million.

It is also the second-largest maker of transmission towers in the world, with a capacity of 310,000 tonnes. Under its expansion programme, KEC acquired SAE Towers in September 2010 with an annual capacity of approximately 100,000 tonnes. China’s Sinohydro is an engineering giant with a wide range of expertise, including in the power sector. It is ranked No.6 in China in turnover, with total sales of over US$14 billion in 2010.

Overseas projects accounted for 27 per cent or approximately US$4 billion of group revenue in 2010 and from this, energy and water-related sectors made up 43 per cent.

Sinohydro has also been focusing on energy-related projects, successfully installing 20,000 megawatts of power plants, including the Yangtze Three Gorges, Jingping Hydropower station, Sudan Merowe Hydropower project and the 2,400MW Bakun Hydroelectric dam in Sarawak.

Sarawak Cable’s decision to partner with the two mega-companies only strengthens its capabilities, position and reputation in Sarawak.

If that’s not enough, Sarawak Cable is also aggressively seeking acquisitions.

They have proposed to acquire a 65 per cent share in Trenergy Infrastructure Sdn Bhd, which is involved in the trading of cables, wires, conductors, steel towers and poles. It also wants to acquire the remaining 25 per cent it does not already own in Sarwaja Timur Sdn Bhd, which makes steel towers.

“We want to be prepared for future deployments,” said Toh.

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