Suprajit Engineering: Tanger Becomes the European Hub for SCS

Suprajit Engineering, the Indian group, has recently completed a significant restructuring of its European operations through Stahlschmidt Cable Systems (SCS). Central to this transformation, the Tangier site is now responsible for all European manufacturing previously conducted in Poland, along with the tool shop that was located in Germany.

Simultaneously, the German warehouse dedicated to the European market has been relocated to Hungary. This redistribution of capabilities allows Suprajit to concentrate a major portion of SCS’s production in Morocco, which is already starting to have an impact on the equipment manufacturer’s results.

After several periods of deficits, SCS recorded a positive margin before interest, taxes, and depreciation in the fourth quarter of the 2025-2026 fiscal year, indicating a gradual recovery in its operations.

Tangier at the Heart of the New Industrial Organization

The Tangier Automotive City site now occupies a strategic position in the European framework of Stahlschmidt Cable Systems. The Moroccan factory is no longer limited to specific productions transferred from other European sites; it now consolidates European manufacturing involved in the restructuring executed by Suprajit.

The transfer of the German tool shop further strengthens this position. The Moroccan site is now responsible not only for the production of cables and components but also for technical functions related to industrial equipment and production means.

However, a portion of the commercial and technical activities remains based in Germany, while Hungary takes care of the warehousing and distribution of parts intended for the European market, particularly those manufactured in Morocco and China.

Suprajit Acquired SCS for €13.5 Million

Suprajit Engineering acquired Stahlschmidt Cable Systems in 2024 as part of a takeover of the German manufacturer’s activities, which were placed in insolvency.

The deal represented an enterprise value of €13.5 million, or approximately 146 million dirhams. The scope of the acquisition included operations in Germany, Poland, Morocco, China, and Canada.

At the time, the Indian group estimated that these activities could generate nearly €50 million in annual revenue, equivalent to about 540 million dirhams.

Since the acquisition, Suprajit has initiated a restructuring aimed at reducing fixed costs, closing less profitable facilities, and concentrating production in sites with the greatest industrial potential.

From Germany and Poland to Morocco

The new organization is the result of several successive industrial transfers. Over the years, some productions had been moved from Germany to Hungary, then from Hungary to Poland, before finally being transferred to Morocco.

Other production lines were directly relocated from Germany to Tangier. Suprajit has now chosen to consolidate a significant portion of this European production in Tangier, which was previously spread across several locations.

This strategy notably responds to a cost control logic. Before its acquisition, SCS had recorded significant losses and retained an industrial structure deemed too heavy compared to its volumes and sales prices.

The Indian group thus shut down the Polish site, moved machinery to Tangier, and reduced its industrial presence in Germany.

Teams Mobilized to Revitalize the Moroccan Site

However, the transformation was not immediate. To support the ramp-up of the Tangier site, Suprajit mobilized teams from India and Hungary.

Their mission was to improve industrial yields, optimize supply chains, and rehabilitate the transferred lines. Simultaneously, costs associated with site closures, equipment relocation, and workforce reductions continued to impact the balance sheets for part of the fiscal year.

Nonetheless, the gradual concentration of production in Tangier is beginning to reflect in SCS’s financial performance.

SCS Significantly Reduces Its Losses

Stahlschmidt Cable Systems’ revenue skyrocketed from 1.713 billion rupees in the previous fiscal year to 4.478 billion rupees in 2025-2026, equivalent to approximately 440 million dirhams.

During the same period, the loss before interest, taxes, and depreciation dropped from 490 million to 237 million rupees, representing a decrease from about 48 to 23 million dirhams.

Relative to revenue, this loss has decreased from 28.6% to 5.3% across the entire fiscal year.

The trend is even more pronounced in quarterly results. The margin before interest, taxes, and depreciation stood at −19.6% in the first quarter, then −6.1% in the second, and −1.8% in the third quarter.

Finally, it became positive in the fourth quarter, reaching 2.1%.

Tangier Contributes to SCS’s Return to Profitability

In the fourth quarter, SCS generated a surplus before interest, taxes, and depreciation of 27 million rupees, roughly 2.7 million dirhams, compared to a loss of 176 million rupees, nearly 17 million dirhams, at the beginning of the fiscal year.

Quarterly revenue reached 1.292 billion rupees, which is approximately 127 million dirhams.

The closure of the Polish site and the transfer of the corresponding production to Tangier appear to be central elements in the recovery initiated by Suprajit Engineering.

Morocco Becomes a European Industrial Platform

With this reorganization, Suprajit significantly strengthens Tangier’s role in its industrial strategy. Production intended for the European market is now more concentrated in Morocco, while Hungary provides logistical support, and certain commercial and technical activities remain in Germany.

The previous organization of Stahlschmidt is gradually disappearing as an autonomous industrial entity. Suprajit now plans to integrate SCS’s results within its division dedicated to cables and control systems.

For Tangier, this evolution marks a new step in its positioning as a manufacturing platform aimed at serving European markets. The Moroccan site effectively becomes the primary manufacturing base for SCS’s activities intended for Europe, further strengthening Morocco’s presence in the automotive and industrial equipment value chain.