Swedish security and defence firm Saab has announced plans for a new munition facility in Grayling, Michigan, US.
The facility will involve a reported investment of $75m and create 70 job opportunities. It will increase the country’s munitions output and address growing customer demand.
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Saab’s new facility will assemble and integrate shoulder-fired munitions and precision fire systems. The construction will start in Q4 2024, while the production is expected to commence in early 2026.
Erik Smith, president and CEO of Saab in the U.S. said, “Given current global security challenges, it is critical the United States strengthens its national defense capacity. We are making a long-term commitment not only to the U.S. defence industrial base but to the local community as well.”
“With Saab’s decision to ‘Make It in Michigan,’ we are building on our economic momentum and strong reputation as a leader in advanced manufacturing,” said Michigan Governor Gretchen Whitmer.
To encourage Saab’s presence in Grayling, the Michigan Economic Development Corp (MEDC) and other state entities have offered various incentives. The Michigan Strategic Fund board approved a $3.5m grant. Saab will also benefit from a 15-year exemption under Michigan’s State Essential Services Assessment program valued at up to $664,500.
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By GlobalDataEarlier this year in March, Saab also broke ground on a new weapons manufacturing plant in India.
The new facility adds to the recent defence investments in the US. Last week, Norwegian defence company Kongsberg announced a new missile site in Virginia.
