Camp Grayling, home to a Michigan National Guard training facility, is the largest such training base in the country – and more than 10,000 troops annually train at the base, generating an estimated $20 million in local economic activity. Encompassing 147,000 acres, Camp Grayling is also the largest military installation east of the Mississippi.
The National Guard base won’t be the only Department of Defense (DoD) entity that will bring revenue to northern Michigan. It was announced on Tuesday that Grayling Township will soon be home to a new $75 million munitions plant.
Swedish-based Saab will break ground by the end of this year, and the facility could be opened by early 2026. It will be used for the final assembly and integration of the defense contractor’s shoulder-fired munitions and precision fire systems.
“Given current global security challenges, it is critical the United States strengthens its national defense capacity. Saab is proud to partner with the state of Michigan and the local community to establish a world-class facility that, with our range of products, will increase and modernize the domestic production of munition systems,” said Erik Smith, President and CEO of Saab in the U.S. “We are making a long-term commitment not only to the U.S. defense industrial base, but to the local community as well. Saab plays a positive role in the communities where we live and work, creating jobs and investing in the local community, and we look forward to joining the Grayling community.”
Saab’s Newest U.S. Plant
This will be the 10th facility run by the Swedish defense contractor in the United States – with other operations including advanced manufacturing within aerospace in West Lafayette, Indiana; radar and sensor systems in Syracuse, New York; training and simulation in Orlando, Florida; autonomous and undersea systems in Cranston, Rhode Island and Quincy, Massachusetts; while the company most recently opened a new operationally focused incubator in San Diego, California.
The facility will create at least 70 new jobs, with wages ranging from $23 an hour to more than $50 an hour, according to the Michigan Economic Development Corporation. Hiring could be expanded once that facility is up and running.
“We will continue pursuing our comprehensive economic development strategy to secure projects, invest in people, and uplift places across Michigan,” Michigan Governor Gretchen Whitmer said in a statement. “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. 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.”
The Michigan Strategic Fund board approved a $3.5 million grant for the program, MLive.com reported. In addition, Saab will receive a $15-year state essential services tax exemption, reported to be worth up to $664,500, while the Swedish-based firm will also receive a state education tax abatement.
The site in Grayling, MI, was chosen from six possible locations. The proximity to the National Guard training base and the experienced workforce were factors that led to its selection, as was the ability for future expansion.
Saab Ordnance to be Made in Michigan
Once the facility is up and running, it will support the production of components for Saab’s Ground-Launched Small Diameter Bomb (GLSDB), a weapon that was jointly developed by Boeing and the Saab Ground. It allows Boeing’s GBU-39 Small Diameter Bomb (SDB) – originally developed for use by aircraft – to be ground-launched. Production of the GLSDB began in 2023, and it saw its first use by Ukrainian forces in the ongoing conflict.
The Swedish firm also noted that the facility would be used for the assembly of shoulder-fired munitions, and while not specified that could include the AT4, a man-portable anti-tank rocket launcher that has been used with much success in Ukraine.
