Please ensure Javascript is enabled for purposes of website accessibility JH Explorer in Charleston: Power cabling the energy transition - Janus Henderson Investors
For individual investors in Sweden

JH Explorer in Charleston: Power cabling the energy transition

During a research trip to the US, Portfolio Manager Tal Lomnitzer spends some time at a high-end cable manufacturer – a company that is vital for the transmission of clean energy from production to consumption points.

Tal Lomnitzer, CFA

Tal Lomnitzer, CFA

Senior Investment Manager

23 Apr 2024
3 minute read

Key takeaways:

  • The electric cable industry is benefiting from an unprecedented wave of demand to build offshore wind farms and electricity grid infrastructure, and also from supply bottlenecks.
  • The high-end cable market is highly specialised, with complicated manufacturing, transport and cable laying processes.
  • Cable manufacturers are just one example of companies that are leveraging their expertise and are developing technologies to enable and benefit from the global energy transition.
The JH Explorer series follows our investment teams across the globe and shares their on-the-ground research at a country and company level.

Ever wondered how the clean green electrons generated at offshore wind farms find their way onshore?  I recently visited historic and picturesque Charleston in South Carolina to see Nexans’ electricity cable-making facility. My due diligence site visits often focus on the extraction and processing of copper, but we also invest in companies using that copper to make products to enable electrification and decarbonisation. In the case of Nexans, that copper and aluminium is utilised to make high voltage cables to transmit electrons from where they are generated to where they are needed.

The electric cable industry is dominated by companies such as Nexans, Prysmian and NKT. This industry is benefiting from an unprecedented wave of demand and bottlenecks in supply chains, as offshore wind farm developers and electricity grid infrastructure companies are racing to build out new capacity and strengthen grids.

The Nexans facility is truly impressive and this made me realise just how tough it is to break into the high-end cable market. It is really complicated and difficult to make these high voltage wires and even trickier to load the immensely heavy spools of cable onto specially constructed vessels and then lay them in tough offshore environments without damaging them.

Nexans also allowed us into their seemingly space-age cable testing centre, where lightning strikes can be simulated, cables are tested for tiny levels of current leakage, or sufficient voltage is generated to take cables to their failure limits.

Charleston is known for its charming architecture and vibrant culture, its role in the American Revolution and Civil War, and for being a hub for agriculture and trade, given its position at the confluence of two major tidal rivers. The city has played an integral part in shaping the US. With highly sought-after cables made by Nexans, it may also play a future role in enabling the development of renewable energy projects and electricity grid networks, not just in the US but in Europe too.

As I wandered around after my site visit, taking in the cobbled streets and exquisitely-preserved houses of the old French quarter, I discovered Charleston was called the ‘Holy City’ because of its tolerance of all religions. I reflected how in the late 19th century electricity had an almost divine status. It seems appropriate that the ‘Holy City’ is also now the place where the cables facilitating the electrification revolution are being made.

Our ESG integration approach: Thoughtful, practical, research-driven and forward-looking

Cash flow: the net balance of cash that moves in and out of a company. Positive cash flow shows more money is moving in than out, while negative cash flow means more money is moving out than into the company.

Images published with permission from Nexans.


Natural resources industries can be significantly affected by changes in natural resource supply and demand, energy and commodity prices, political and economic developments, environmental incidents, energy conservation and exploration projects.

Sustainable or Environmental, Social and Governance (ESG) investing considers factors beyond traditional financial analysis. This may limit available investments and cause performance and exposures to differ from, and potentially be more concentrated in certain areas than, the broader market.


These are the views of the author at the time of publication and may differ from the views of other individuals/teams at Janus Henderson Investors. References made to individual securities do not constitute a recommendation to buy, sell or hold any security, investment strategy or market sector, and should not be assumed to be profitable. Janus Henderson Investors, its affiliated advisor, or its employees, may have a position in the securities mentioned.


Past performance does not predict future returns. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested.


The information in this article does not qualify as an investment recommendation.


Marketing Communication.






Important information

Please read the following important information regarding funds related to this article.

The Janus Henderson Horizon Fund (the “Fund”) is a Luxembourg SICAV incorporated on 30 May 1985, managed by Janus Henderson Investors Europe S.A. Janus Henderson Investors Europe S.A. may decide to terminate the marketing arrangements of this Collective Investment Scheme in accordance with the appropriate regulation. This is a marketing communication. Please refer to the prospectus of the UCITS and to the KIID before making any final investment decisions.
    Specific risks
  • Shares/Units can lose value rapidly, and typically involve higher risks than bonds or money market instruments. The value of your investment may fall as a result.
  • Shares of small and mid-size companies can be more volatile than shares of larger companies, and at times it may be difficult to value or to sell shares at desired times and prices, increasing the risk of losses.
  • The Fund is focused towards particular industries or investment themes and may be heavily impacted by factors such as changes in government regulation, increased price competition, technological advancements and other adverse events.
  • The Fund follows a responsible investment approach, which may cause it to be underweight in certain sectors (due to the avoidance criteria employed) and thus perform differently than funds that have a similar financial objective but which do not apply any avoidance criteria when selecting investments.
  • The Fund may use derivatives with the aim of reducing risk or managing the portfolio more efficiently. However this introduces other risks, in particular, that a derivative counterparty may not meet its contractual obligations.
  • If the Fund holds assets in currencies other than the base currency of the Fund, or you invest in a share/unit class of a different currency to the Fund (unless hedged, i.e. mitigated by taking an offsetting position in a related security), the value of your investment may be impacted by changes in exchange rates.
  • Securities within the Fund could become hard to value or to sell at a desired time and price, especially in extreme market conditions when asset prices may be falling, increasing the risk of investment losses.
  • The Fund may incur a higher level of transaction costs as a result of investing in less actively traded or less developed markets compared to a fund that invests in more active/developed markets.
  • The Fund could lose money if a counterparty with which the Fund trades becomes unwilling or unable to meet its obligations, or as a result of failure or delay in operational processes or the failure of a third party provider.