Prysmian Drops Plans for US Offshore Wind Cables Factory

Italy's Prysmian will abandon a plan to build a plant in the United States to make cables for offshore wind parks, the group said in a statement seen by Reuters on Tuesday, even as it expands its overall business in the country.

Prysmian, the world's biggest cable maker and a major player in offshore wind transmission, does not see a strong enough market in the U.S. for wind farms, a source close to the company told Reuters.

"It is not a political decision," a spokesperson for the company said. "The market for offshore wind is in Europe".

On Monday President Donald Trump suspended new federal offshore wind leasing pending an environmental and economic review, saying wind mills are ugly, expensive and harm wildlife.

That sent shares in the world's top offshore wind firm Orsted plunging 17% on Tuesday after it warned of higher costs and delays to a crucial U.S. offshore project.

Shares in Prysmian were down 1.4% by 1045 GMT.

But the group, which is planning a potential dual listing in the U.S. after the recent acquisition of Encore Wire, added in the statement that opportunities in the country continued to show strong growth potential.

"We have all the requirements