Saab to Launch $75 Million Munitions Facility in Northern Michigan by 2026

Saab to Open $75 Million Munitions Plant in Northern Michigan by 2026

Saab AB, the esteemed Swedish defense and security company, has unveiled plans of commencing construction of a $75 million munitions plant in the area of Grayling Township, Northern Michigan. The company recently made a statement offering a timeline for the eagerly anticipated project, saying that operations are slated to begin in early 2026 with the groundbreaking expected to occur before the end of this year.

A Great Leap Forward

Saab executives have expressed enthusiasm about the move. The Vice President and General Manager of Saab, Inc.’s Land System Division, Brad Barnard, described the establishment of the plant as a necessary step towards bolstering Michigan’s role as a hub for the defense industry. “We’re really, really excited to move forward and strengthen Michigan’s position as the arsenal of democracy”, Barnard commented.

Boosting Jobs and More

In addition to elevating the state’s reputation within the defense sector, the project is expected to substantially boost regional employment. Estimates suggest that the plant’s operation will create roughly 70 jobs, providing wages within the bracket of $23-$50 per hour according to the Michigan Economic Development Corporation (MEDC).

Saab’s Expanding Defense Business

While Saab is perhaps best recognized in the U.S. for its involvement in automobile manufacturing, the company has a longstanding primary focus in the defense industry. Amid turbulent global conflict conditions and Sweden’s recent NATO membership, Saab has seen its business prosper significantly.

Strengthening National Defense

In the wake of heightened international security challenges, Saab’s increased and modernized munitions production in the United States is imperative, according to Erik Smith, Saab’s U.S. CEO. The forthcoming plant is projected to spawn a novel Ground-Launched Small Diameter Bomb system alongside shoulder-launched munitions.

Securing State Aid

To facilitate the setup of the plant, the Michigan Strategic Fund board endorsed a $3.5 million grant on the day of the announcement. Saab is also set to enjoy a 15-year state essential services tax exemption worth up to $664,500 and a state education tax abatement.

Local Opposition and Environmental Concerns

Despite its economic benefits, the project hasn’t been without opposition. Among the most vocal critics are those who previously protested the proposed expansion of the Camp Grayling Joint Maneuver Training Center in 2022. Challenges raised center upon environmental concerns, particularly around the potential usage of harmful chemicals such as PFAS.

Assuring Environmental Safety

Addressing these concerns, Michelle Grinnell, senior vice president with the MEDC, indicated that the chosen site is PFAS-free, and an environmental review would be demanded when the state-owned site is purchased by Saab. Saab has also openly declared that it does not employ the use of PFAS.

The Promise of Increased Investment

Despite the concerns, Saab’s commitment represents a significant progression for Michigan’s defense industry. Adding an optimistic note, Brad Barnard further revealed that Saab sees its $75 million investment and 70 initial jobs as just the beginning, projecting more job opportunities and an increased capital investment in the near future.