Defense contractor Saab today announced a new $75 million munitions facility in Grayling, Michigan. The company plans to establish an integration and assembly facility in the community located in the North-Central part of the state, to support U.S. military product engineering and production.
The factory will be used for final assembly and integration of shoulder-fired munitions and precision fire systems. The groundbreaking will take place later this year; initial manufacturing is scheduled to begin in early 2026.
The project is expected to create more than 70 new jobs and bring a capital investment of $75 million to the area. The jobs will be spread across the company’s land-based system products portfolio, including manufacturing production and assembly positions, as well as roles in testing, engineering and operations. The assembly facility will be the company’s first investment in Michigan.
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Governor Gretchen Whitmer today announced approval from the Michigan Strategic Fund (MSF) to support the project. Saab will receive a $3.5 million Michigan Business Development Program (MBDP) grant and a 15-year, 100% State Essential Services Assessment (SESA) exemption with an estimated value of up to $664,500. An SESA is typically required for manufacturers that do not pay personal property tax on eligible property. The MSF can exempt or reduce the assessment for projects in eligible distressed areas that result in $25 million or more of qualifying investments.
According to Erik Smith, president and CEO of Saab U.S., the plant will increase and modernize the domestic production of munition systems.
Under an existing memorandum of understanding with the local community, the Michigan Department of Natural Resources will consider a land sale for the facility later this year.
The plant will be Saab’s 10th facility in the U.S. The company also has an aerospace plant in West Lafayette, Indiana, a radar and sensor systems factory in Syracuse, New York, training and simulation facilities in Orlando, Florida, autonomous and undersea systems development in Cranston, Rhode Island and Quincy, Massachusetts and a new incubator in San Diego, California.
The Michigan Economic Development Corporation advocates for business development, job awareness and community development with the focus on growing Michigan’s economy.
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