CORRECTED Offshore wind cable makers turn to Europe as Trump risks loom
Corrects paragraph 11 to specify that the forecast is an annual figure
By Nathan Vifflin and Alessandro Parodi
Nov 13 (Reuters) -Nexans NEXS.PA said on Wednesday it would turn its U.S.-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 U.S. offshore wind market.
During its Capital Markets Day event, Nexans management said it could redirect U.S.-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 U.S. offshore wind projects in the next four years.
The offshore wind industry is bracing for a U.S. 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, PRY.MI told Reuters on Wednesday its transmission business backlog of 18 billion euros ($19.13 billion) is entirely concentrated in Europe, with no U.S. exposure.
The Italian cablemaker, which has a significantly larger presence than Nexans in the U.S., holds about 40% 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 U.S. 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 U.S. 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.
($1 = 0.9410 euros)
Reporting by Nathan Vifflin and Alessandro Parodi in Gdansk; editing by Milla Nissi and Sharon Singleton
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
