Nexans Plans Export Hub Amid Offshore Wind Challenges

By Nathan Vifflin and Alessandro Parodi
(Reuters) – Nexans announced on Wednesday its intent to transform its U.S. plant into an export hub if offshore wind initiatives are threatened during Donald Trump's potential second term as president.

The French power and data cable specialist operates a plant in Charleston, South Carolina, which manufactures undersea cables for the U.S. offshore wind market.
During a Capital Markets Day event, Nexans management stated that U.S.-made cables could be redirected to Europe with minimal impact on profit margins.

Nexans' Deputy CEO and CFO, Jean-Christophe Juillard, expressed confidence that the company would remain unaffected even if Trump were to halt all U.S. offshore wind projects over four years.

The offshore wind sector is anticipating difficulties, with major industry players like Siemens Energy and RWE warning of potential challenges and delays due to the incoming president's stance.

Competitor Prysmian, the world’s largest cable maker, reported its transmission business backlog of €18 billion ($19.13 billion) is fully concentrated in Europe, lacking U.S. exposure.
The Italian company, which has a substantially larger U.S. presence than Nexans, claims approximately 40% of the global power transmissions market.

A Prysmian spokesperson noted, “We do not foresee any significant impact from the Trump presidency on our orders, as we believe this business segment will primarily be driven by Europe.”

Analysts emphasized that following the election, long-term visibility for U.S. offshore wind volumes has decreased. They noted that local manufacturers may hold an advantage over foreign imports, particularly with proposed tariffs.

Analysts at Jefferies suggested that Prysmian could leverage European capacity for future U.S. projects. The company expects the global power transmission industry to reach €15 billion by 2030.

($1 = 0.9410 euros)