Swedish Defense Contractor Saab Pledges $75M for New Munitions Facility in Grayling

Investment Expected to Maximize Regional Testing Facilities and Generate Local Employment

International aerospace and defense contractor Saab Inc. has revealed plans for a $75 million munitions production plant in Grayling Township, Michigan. Slated for completion in 2026, the facility is expected to generate up to 69 jobs, while tapping into the testing facilities available at nearby Camp Grayling.

According to a statement issued by Saab, the new plant would assemble shoulder-fired munitions and precision-fire systems. It is anticipated that groundwork for the facility will commence later this year.

State Support Clears Path for Construction

The Michigan Strategic Fund gave its approval to a $3.5 million Michigan Development Program Grant on Tuesday, paving the way for the project to move ahead. In addition, Saab will benefit from a 15-year personal property tax exemption amounting to around $664,500, and a state education tax abatement.

The Department of Natural Resources (DNR) is also expected to sell land to Saab for the proposed facility. Saab has chosen a 388-acre plot for its development, but anticipates that the facility itself will occupy approximately 60 acres.

A World-Class Manufacturing Base

With its range of products, Saab expects its Grayling facility will modernize and enhance domestic munition system production, helping to enhance national defense capacity in challenging global security conditions. While shoulder-fired munitions and precision fire systems are the initial focus, the site is expected to engineer and produce missile system weapons over the long term.

The Grayling plant will be Saab’s 10th U.S. facility, with other manufacturing sites distributed across Indiana, New York, Florida, Rhode Island, Massachusetts, and California.

Embracing the ‘Make It in Michigan’ Ethos

The new plant deepens Michigan’s status as a leader in advanced manufacturing and adds momentum to the state’s thriving economy. The selection of Grayling as the site for the munitions facility followed a contest between six potential states. “We built the arsenal of democracy to win WWII and will keep rolling up our sleeves to protect our national defense. Let’s get it done,” commented Governor Gretchen Whitmer in a statement on Tuesday.

Building on Camp Grayling’s Facilities

Saab has already initiated discussions with Camp Grayling officials regarding potential partnerships for product testing as mandated by the Department of Defense. Employed throughout the year by the Michigan National Guard and various other units, Camp Grayling serves as a center for statewide and international military and paramilitary training.

Creating Job Opportunities

Upon completion, the facility is projected to create 69 jobs with a competitive average wage of $39.91 per hour, solidifying Saab’s contribution to Michigan’s ongoing economic development.