Sarawak  Cable  (SCB)  is  transforming  from  a  pure  cable  and  wire  manufacturer into  a  one-stop  centre,  which  enables  it  to  access  the  power  transmission industry's  value  chain  and  to  tap  into  SCORE's  abundant  but  under-utilised energy  resources.  The  company  has  acquired  STSB,  which  offers  exposure  to fabricating and galvanising transmission towers and other steel products, as well as  TISB,  a  contractor  for  transmission  lines.  SCB  also  expects  a  new  income stream from mini hydro power generation starting 2014 via 65%-owned PT Inpola Mitra Elektrindo.
  
Laying cables across East Malaysia. SCB, listed on Bursa Malaysia's Main Board on 25  May  2010,  is  a  manufacturer  of  aluminium  and  copper  cables  and  wires  based  in Kuching, Sarawak. Given its high exposure in the East Malaysian market, the company controls roughly a third of the region's market share and offers products that include low voltage power cables and high voltage bare conductors.

A  one-stop  power  transmission  centre.  Post-listing,  SCB  acquired  75%  of  Sarwaja Timur SB (STSB) and is now in the midst of acquiring the remaining 25% for RM11.3m. Separately, SCB has also proposed to acquire full interest in Trenergy Infrastructure SB (TISB) for RM65m. STSB is involved in the fabrication of transmission towers and other steel products and also provides galvanising services, while TISB is an EPC contractor for  transmission  lines.  The  acquisition  will  benefit  SCB  in  terms  of  synergy  and  also facilitate the creation of a one-stop centre for power transmission projects. The company is  also  expanding  overseas  by  acquiring  a  65%  stake  in  PT  Inpola  Mitra  Elektrindo (IME),  which  has  been  awarded  a  20-year  Power  Purchase  Agreement  (PPA)  for  a  11 MW mini hydro power plant. Construction is expected to begin this year and complete in 2014.

More  from  SCORE.  Other  than  the  2,400MW  Bakun  dam  that  has  its  power transmission  line  and  substation  at  Samalaju  Industry  park,  there  are  many  untapped energy resources amounting to 28,000 MW in the corridor. With SCORE's development picking  up speed,  the  region  is  expected  to  be  a  hive  of  activity  going  forward.  SCB, a homegrown  player,  is  likely  to  be a  frontrunner  for any  power  transmission  projects, as its  new  one-stop  centre  gives  the  group  access  to  the  power transmission industry's entire value chain. The company's orderbook, including that of TISB's (whose acquisition is expected to be completed by end-2012), totals RM292m.

Source: OSK