Shelby Twp. defense manufacturer to build $163M addition
Posted By: Macomb Daily on July 28, 2026. For more information, please click here to read the source article.
A Shelby Township defense manufacturer plans to construct a $163-million, 200,000-square-foot production facility that is forecasted to create over 300 jobs, according to state officials.
The Michigan Strategic Fund Board has approved a $5-million Michigan Business Development Program performance-based grant for the project, as well as a 15-year, 50% tax break with an estimated value of $1.4 million for its $130 million eligible personal property, the governor’s office announced Tuesday in a news release.
The expansion project at its facility near 23 Mile Road and the Van Dyke Expressway (M-53) is expected to create at least 328 new jobs with a starting wage of $28 per hour – above the regional median wage of $24.69 per hour, state officials said. The Spanish-based company currently employs 315 people in Spain and 60 people in Shelby Township.
It also will nearly double the amount of its capacity. SAPA’s existing building is 110,000-square-feet and the new building will be 202,000-square-feet, according to county officials.
SAPA supplies the U.S. Army with transmission technology solutions for military tracked and wheeled vehicle applications. Its customers include BAE Systems and General Dynamics.
Also Tuesday, FANUC America Corp., a global leader in robotics and automation headquartered in Rochester Hills, is expanding its operations with the construction of a new, 840,000 square-foot facility in nearby Pontiac to meet increased domestic demand for robotics and industrial equipment.
The MSF Board approved a nearly $1.6-million MBDP grant to support the expansion, which will result in the estimated creation of at least 225 jobs, and an investment of at least $90 million. FANUC currently has 1,497 employees at five Michigan locations.
“Today’s announcement(s) will create over 550 good-paying jobs and cement Michigan as the best place to build the future,” Gov. Gretchen Whitmer said if the projects in the release. “Let’s keep working together to create good-paying jobs, bring supply chains home from overseas, and tell Michigan’s story.”
Quentin Messer, Jr., CEO of the MEDC and MSF Board Chair, said the projects “demonstrate that the state’s economic development strategy focused on supporting businesses of all sizes, revitalizing places and creating employment opportunities for Michiganders is having a positive impact.”
SAPA’s expansion in Southeast Michigan strengthens the region’s position as a defense and advanced manufacturing hub for ground combat vehicle development and production while further connecting them to the local and Michigan supply chain, state officials said. It enhances “the state’s leadership and reputation as a hub for advanced manufacturing and Industry 4.0 technologies,” officials said.
It also serves as a “major economic driver for Shelby Township” and provides redevelopment of a brownfield site.
The company considered other states including Ohio, Alabama, Pennsylvania, and Texas for its expansion, but chose Michigan for its “defense manufacturing ecosystem,” officials said.
“SAPA Transmission’s continued progress in Michigan is a testament to the exceptional partnership between industry, state leadership, and local communities,” said Darren Werner, SAPA Transmission president. “Michigan has long been the Arsenal of Democracy, and today we are proud to be contributing to the next generation of defense manufacturing right here in Shelby Township.”
“We are deeply excited that SAPA Transmission chose to continue their growth in Macomb County,” said County Executive Mark Hackel. “Manufacturing operations continue to advance as a core part of our economy, with notable assistance from our economic development team and partners.”
In January 2023, SAPA was forced to reduce the scope of its Shelby Township facility hiring plans and production levels, as it planned to hire about 25% of a projected 223 jobs the company said it would create when the Michigan Strategic Fund awarded it a $2.7 million Michigan Business Development Program grant in 2018.
The scale-back was caused by delays in defense-related contracts, state officials said.
The MSF Board reduced the grant to $600,000 based on an estimate of about 50 jobs to be created.
The company had invested over $42 million in the Shelby Township property and planned at that time to invest another $20 million in facilities, equipment and manufacturing capability.
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