Suprajit Engineering Limited announced restructuring measures at its Suprajit Controls Division (SCD). The restructuring includes consolidating Mexico operations, relocating Suprajit Canada to a larger facility, and rightsizing Suprajit Germany GmbH (SGG). These actions are expected to streamline SCD's global operations, enhance customer service, and improve cost efficiency.
| Measure | Total Expense | Annual Savings |
|---|---|---|
| Mexico Operations Consolidation | ~$500K | ~$750K |
| Suprajit Germany GmbH (SGG) Rightsizing | ~€1.1M | ~€850K |
Mexico Operations Consolidation
Suprajit will relocate all operations at its Mexico plant. Most manufacturing will shift to the Matamoros plant, while some low-volume/high-value products will move to Wichita, USA. The Juarez plant, which operates under a third-party Maquiladora arrangement, will close by December 2025. The Brownsville warehouse will be expanded to support the business growth of SCD. This consolidation is projected to incur expenses of approximately $500,000, but is expected to yield annual savings of around $750,000.
Suprajit Canada Relocation
Suprajit Canada will consolidate its operations from two facilities totaling 19,000 sq.ft. at Everest Drive, Mississauga, to a single, larger 30,000 sq.ft. facility at Columbus Rd, Mississauga. The relocation is targeted for completion by the end of September and is expected to have minimal financial impact, while providing additional space for expansion.
Suprajit Germany GmbH (SGG) Rightsizing
Following the relocation of operations to Suprajit Morocco and the warehouse to Suprajit Hungary, the SGG team will be rightsized to focus on business development and engineering support. This restructuring will be completed by December 2025. The company expressed gratitude to the team for their efforts in addressing the challenges faced by the operations in recent years. The rightsizing is expected to cost approximately €1.1 million, with anticipated annual savings of around €850,000.
Strategic Rationale
These restructuring activities mark the final phase of the plan outlined in the previous business update. The measures are in line with budgeted plans and costs and aim to streamline SCD's global operations, including the recently acquired SCS entities/assets. The expected outcomes include an optimized operational footprint, enhanced customer service, and improved cost efficiency. The operational data for Q4 of the current year is expected to reflect the impact of these measures.
About Suprajit Engineering Limited
Suprajit Engineering Limited is the largest automotive cable and halogen bulb maker in India, with a global capacity of 400 million cables and 110 million halogen bulbs annually. The company's customer base includes several global automotive majors. The Suprajit Group has a presence in four continents, with multiple plants, tech centers, and warehouses.
