Saab Announces New Munitions Facility in Michigan to Strengthen US Defense Production.

Swedish defense company Saab has announced the upcoming opening of a new munitions production facility in Grayling, Michigan, marking a significant step in its efforts to expand domestic production capacity in the United States. With support from the state of Michigan and the local community, Saab aims to strengthen U.S. national defense while creating jobs and investing in the regional economy. The facility will focus on the final assembly and integration of shoulder-fired munitions and precision fire systems, addressing the growing demand for advanced weaponry amid current global security challenges.
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As operations expand, Smith indicated that the plant would produce components for the Ground-Launched Small Diameter Bomb (GLSDB) system and close combat weapons (Picture source: Saab)

The groundbreaking for the facility is scheduled for the fourth quarter of 2024, with production expected to begin in early 2026. Erik Smith, President and CEO of Saab in the U.S., emphasized the company’s long-term commitment to both the U.S. defense industrial base and the local Grayling community. According to Smith, this initiative is part of Saab’s broader strategy to play a positive role in the communities where it operates, creating quality jobs and supporting local economies. He also noted that the Grayling site was selected from six potential locations due to its proximity to the largest U.S. Army National Guard training base and the availability of a skilled workforce.

The Grayling facility will become Saab’s tenth site in the U.S., adding to a growing network of advanced manufacturing and research centers across the country. These sites include facilities in West Lafayette, Indiana, for aerospace manufacturing, Syracuse, New York, for radar and sensor systems, as well as locations in Rhode Island and Massachusetts focused on autonomous and undersea systems. This new facility is part of Saab’s global expansion effort, which aims to quadruple its overall production capacity for ground combat weapons in response to increased demand.

Michigan Governor Gretchen Whitmer welcomed Saab’s decision to establish the new facility in Grayling, noting that the project would initially create 70 jobs, with the potential for future expansion. Whitmer highlighted Michigan’s historical role as a leader in defense manufacturing, recalling the state’s legacy as the "arsenal of democracy" during World War II. She also emphasized the importance of this investment for Michigan’s economic development and its continued reputation as a hub for advanced manufacturing.

The Grayling facility will not only produce existing shoulder-fired munitions systems but will also serve as an innovation center for the development of new products. As operations expand, Smith indicated that the plant would produce components for the Ground-Launched Small Diameter Bomb (GLSDB) system and close combat weapons. The site, which spans 388 acres, will allow for future expansion and the potential inclusion of engineering capabilities as the business evolves.

Saab’s approach at Grayling follows the model used at its West Lafayette facility, where initial production began in Sweden before transitioning to the U.S. plant. This strategy enabled Saab to establish a high-tech manufacturing site with low-rate initial production, allowing it to quickly meet market demands. In Michigan, Saab plans to replicate this success by leveraging advanced manufacturing technologies to increase U.S. munitions production capacity while supporting critical defense needs.

By increasing its presence in the U.S., Saab aligns with broader goals of strengthening the domestic defense industrial base and enhancing national security. The Grayling facility represents a key component of Saab’s long-term strategy to position itself as a reliable partner to the U.S. military, with the capability to provide advanced munitions systems while contributing to local economies.

As Saab prepares to break ground in Michigan, the company’s announcement underscores the growing importance of domestic production capacity in the global defense landscape. With ever-evolving security challenges, partnerships like those between Saab and the state of Michigan will play a crucial role in preparing and strengthening the national defense infrastructure.