NEXANS said on Wednesday (Nov 13) it would turn its US-based plant into an export hub if the offshore wind sector was challenged under Donald Trump’s second stint as president.
The French power and data cable specialist’s plant in Charleston, South Carolina makes undersea cables used by the US offshore wind market.
During its Capital Markets Day event, Nexans management said it could redirect US-made cables to Europe with little impact on its margins.
Nexans’ deputy CEO and chief financial officer Jean-Christophe Juillard, said he was confident the company is not at risk even if Trump halts all US offshore wind projects in the next four years.
The offshore wind industry is bracing for a US impact, with two of the world’s biggest players in the sector, Siemens Energy and RWE, warning of challenges and potential delays for the technology slammed by the president-elect on Wednesday.
Competitor and the world’s largest cable maker, Prysmian, told Reuters on Wednesday its transmission business backlog of 18 billion euros (S$25.5 billion) is entirely concentrated in Europe, with no US exposure.
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The Italian cablemaker, which has a significantly larger presence than Nexans in the US, holds about 40 per cent of the global power transmissions market, a Prysmian spokesperson said.
“We do not see any material impact from the Trump presidency on our orders, as we continue to see this business segment to be driven primarily by Europe,” he added.
Analysts said after the election that long-term visibility on US offshore wind volumes has been reduced, while manufacturers with a local presence would have an advantage against foreign imports thanks to proposed tariffs.
“Prysmian could also use European capacity to fulfil US projects in the future,” analysts at Jefferies said on Tuesday.
The company sees the global transmission market to stay at an annual 15 billion euros until at least 2030. REUTERS
