Saab To Build New US Factory in Michigan

Swedish defence firm Saab will soon have a new U.S. factory in which to produce its shoulder-mounted Individual Assault Munitions (IAMs) and precision-fire systems.

The European defence contractor recently announced it would expand its production capacity in the United States with the construction of a new facility in Grayling, Michigan. As per a company press statement, spades will go in the ground in the last quarter of 2024 and assuming work proceeds on schedule, the new plant will begin production in early 2026.

It said the new factory "will be used for final assembly and integration of shoulder-fired munitions and precision fire systems."

It's thought the new factory will create at least 70 new jobs in the Grayling area; it will be the Swedish firm's tenth factory in the United States.

“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.

He went on: “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.” 

In late August the U.S. Department of Defence (DoD) announced Saab had won a $495 million contract to deliver an undefined number of its XM919 shoulder-fired single-use weapons systems by August 2029.

As per the Saab website, its IAM weapon — the AT4CS TW — is "specifically designed to combine the force of the tandem warhead with the ability to fire in narrow positions or other confined spaces without harm to the operator or nearby individuals. This unique design also allows the operator to benefit from protection and cover in urban warfare.

"The tandem warhead excels against a wide variety of targets, including brick or concrete buildings and light armored vehicles, and delivers behind the wall effects to incapacity threat forces while minimizing collateral damage."

The AT4 weapons come preloaded with a single 84mm round; their launch tubes are discarded after firing. Existing variants can be used against buildings, bunkers and armored vehicles. The U.S. military has already used existing versions of its AT4 systems in real-world combat operations including Desert Storm, Operation Iraqi Freedom and Operation Enduring Freedom. 

• You can read more details about the new factory on the Saab website