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This paper has developed the coordination of load shedding scheme and superconducting magnetic energy storage (SMES) unit to enhance the transient stability of a large industry cogeneration facility. The load-shedding scheme and the tie line tripping strategy by using the frequency relays have been designed to prevent the power system from collapse when an external fault of utility power system occurs. An actual external fault case and a simulated internal fault case have been selected to verify the accuracy of the load shedding scheme by executing the transient stability analysis. To improve the frequency and voltage responses, an SMES unit with various control modes has been installed in the cogeneration system. The sensitivity analysis of the SMES unit with different parameters is applied to achieve better system responses. Besides, an SMES unit with active power deviation as feedback signal is also considered to improve the electric power fluctuation of the study plant with rolling mills. It is found that the SMES system will enhance the electric power quality and minimize the economic losses of the cogeneration facility due to unnecessary load shedding.