Cable giant done with US offshore wind 'this year' as American factory hums for Europe
French power and telecommunications giant Nexans will start exports to EU after wrapping US commitments from South Carolina plant
Power cabling giant Nexans expects to meet its outstanding commitments to supply and install subsea cables for US offshore wind projects this year, meaning that its factory in Charleston, South Carolina, will become dedicated entirely to meeting European demand.
Nexans had already signalled that output from the only high-voltage subsea power cables factory on US soil will pivot to Europe, where demand is red hot.
This follows the sharp downturn in fortunes for offshore wind in the US, but analysts have continued to ask questions about existing exposure existing projects there.
In a Nexans earnings call today (Wednesday), CEO Christopher Guérin, told analysts the company’s contractual scope for Orsted’s Revolution project will be complete "in the coming weeks".
He added that the company also expects this year to complete all cable manufacturing for Equinor’s Empire Wind 1 project.
“This means at the end of 2025,our exposure in regards to offshore wind farms in the US will be over,” the Nexans’s CEO said, adding that the company had not been affected by any cancelled offshore wind projects.
Several flagship US offshore wind projects were cancelled or shelved when developers such were hit by surging supply chain costs in the 2021-23 period.
Donald Trump's attacks on offshore wind and threats of tariffs have taken even more of the momentum out of the US sector since then.
Meanwhile, strengthening grid systems to accommodate electricity flows from offshore wind generation, plus a proliferation of long-distance interconnector projects, has stoked up demand for subsea cables in Europe.
Market intelligence firm Spinergie has forecast an overall nine-fold increase in demand for subsea cables in European markets through 2030.
Grids represent about 20% of Nexans’ business at present and the company has already signalled that soaring European demand will keep the Charleston plant close to fully occupied until 2028 “at least”.
Hinting at more European projects on the way Guérin told analysts, “Charleston will start in 2026 manufacturing a project that will soon be awarded for Europe."
The company has also dismissed concerns about added transport costs, claiming that shipments between the two continents were already factored into its planning for Opex and apex.
Nexans has expanded its high voltage subsea cable plant in Halden, Norway, to deliver subsea cables up to 525kV for HVDC and 420kV for HVAC and is also extending a factory at Charleroi, Belgium.