Swedish aerospace and defense contractor Saab Inc. has announced plans to build a $75 million munitions production facility in Grayling Township, Michigan, which is expected to create up to 69 jobs. The facility will take advantage of nearby Camp Grayling’s testing resources. 

A Bright Horizon for New Michigan Manufacturing Facility 

Slated to open in early 2026, the facility will focus on the assembly of shoulder-fired munitions and precision fire systems, with construction expected to begin later this year. Saab has also secured financial support from the Michigan Strategic Fund, which approved a $3.5 million Michigan Development Program Grant and a 15-year personal property tax exemption valued at about $664,500. The company will also receive an education tax abatement. 

The Department of Natural Resources (DNR) is expected to sell Saab a parcel of land for the project, with plans to develop 60 acres of a 388-acre site, which is zoned for development. 

“Given the current global security challenges, it’s critical for the United States to strengthen its national defense capacity,” said Saab president and CEO Erik Smith. “We’re proud to partner with Michigan and the local community to establish a state-of-the-art facility that will help modernize the domestic production of munitions.” 

Planning for the Future 

While the immediate focus for the facility will be on assembling shoulder-fired munitions and precision fire systems, Saab has long-term plans to expand production capabilities, including missile weapon systems, according to company spokesman Petter Larsson. “This will be a world-class, advanced manufacturing and engineering facility,” he added. 

The land for the facility is located between 4 Mile Road, the Grayling Industrial Park, and Interstate 75. The sale of the property is contingent on approval by DNR Director Scott Bowen. 

This new plant will be Saab’s 10th in the U.S., joining other sites in Indiana, New York, Florida, Rhode Island, Massachusetts, and California. Michigan was one of six states under consideration for the project, the Michigan Economic Development Corporation (MEDC) noted. 

Gov. Gretchen Whitmer expressed support for the investment, saying, “With Saab’s decision to ‘Make It in Michigan,’ we are building on our economic momentum and our strong reputation as a leader in advanced manufacturing. We built the arsenal of democracy to win WWII, and we will continue to strengthen our national defense.” 

A Cooperative Effort 

Saab has also been in talks with Camp Grayling officials to explore potential partnerships with the Department of Defense to test munitions. The Michigan National Guard and other military units frequently train at Camp Grayling, which spans 148,000 acres. 

The new facility is expected to offer well-paying jobs, with an average hourly wage of $39.91 for the 69 positions it will create. 

While Camp Grayling’s expansion has sparked some local controversy—particularly from residents and environmental advocates who argue that it threatens the area’s natural charm—the DNR recently blocked a proposal to double the camp’s size. Instead, the DNR will require the Department of Military and Veterans Affairs to apply for limited-use permits for training activities on up to 52,000 acres of DNR-managed land, which will remain open to the public. 

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