Prysmian Withdraws US Cable Factory Proposal
Italy-based Prysmian Group, recognized as the world’s largest cable manufacturer and a key player in offshore wind transmission, has announced its decision to cancel plans for building a U.S. manufacturing plant to produce cables for offshore wind parks. This decision comes despite the company’s broader expansion strategy within the United States.
According to sources close to the firm, the move comes as Prysmian sees limited potential in the U.S. offshore wind market. A statement released on Tuesday, originally obtained by Reuters, emphasized this market-related decision.
“This is not a political decision,” a Prysmian spokesperson clarified. “The offshore wind market is far more developed in Europe compared to the U.S.”
U.S. Offshore Wind Development Faces Challenges
Challenges facing the U.S. offshore wind industry have also been highlighted in light of recent decisions by former President Donald Trump. Trump suspended all new federal offshore wind leasing as part of an environmental and economic review process earlier this year. Notably, Trump criticized offshore wind farms, describing them as “ugly, expensive, and harmful to wildlife.”
This announcement sent shockwaves across the renewable energy sector, with shares in Denmark’s Ørsted, the global leader in offshore wind energy, dropping by 17%. Ørsted cited rising costs and potential delays for a key U.S. offshore wind project as a result.
Likewise, Prysmian shares saw a modest dip, falling by 1.4% as of Tuesday morning at 10:45 GMT.
Focus Shifts to U.S. Growth in Other Sectors
While dropping plans to build the offshore cable plant in Brayton Point, Somerset, Massachusetts, Prysmian remains optimistic about other opportunities in the United States. The company highlighted growing demand in other sectors, including data center infrastructure upgrades and modern energy systems, aligning with broader U.S. modernization trends.
“There will be massive investments connected to data centers and the upgrades needed for modern energy systems,” a company spokesperson commented. “This aligns with the investments anticipated under Trump’s administration.”
Prysmian is also considering a dual listing in the U.S. market following its recent acquisition of Encore Wire, a Texas-based company. “All the fundamentals for a U.S. listing remain in place. If we proceed, we are well-positioned,” the spokesperson added.
Original Brayton Point Facility Plans Announced in 2021
Prysmian initially announced plans for the Brayton Point cable manufacturing facility in 2021. The project, which involved a €200 million (approximately $207 million) investment, was part of two contracts valued at nearly $900 million in total within the U.S.
The company’s decision not to move forward with the plant reportedly occurred prior to Trump’s inauguration, suggesting strategic repositioning rather than abrupt reactionary policy changes.
Offshore Wind Industry Faces an Uncertain Future in the U.S.
Prysmian’s canceled plant is further evidence of the challenges facing the U.S. offshore wind sector, already shaken by policy uncertainty and diminishing investor confidence. Earlier this month, Trump publicly criticized windmills, vowing to ensure no new installations during his tenure.
For now, Prysmian appears to be channeling its efforts toward other growth opportunities within the U.S., particularly where its advanced cable technologies can support modernization and energy system upgrades.
As the U.S. offshore wind market continues to develop, the lack of robust infrastructure and political support has cast doubts on its ability to catch up with the mature European market.
