FANUC America and SAPA Transmission will expand in Oakland and Macomb counties as Michigan advances additional investments in housing, industrial infrastructure, small businesses and startup financing.
The Michigan Strategic Fund Board has approved support for two major advanced manufacturing expansions expected to generate at least $253 million in capital investment and create 553 jobs across Southeast Michigan.
FANUC America Corporation plans to establish a new robotics and automation facility in Pontiac, while defense manufacturer SAPA Transmission will expand its operations in Shelby Township. The board also approved projects supporting housing and retail development in Detroit, industrial site readiness in Erie Township and entrepreneurship programs across the state.
“Michigan is on the move and open for business, competing for and winning big projects in industries like robotics and defense manufacturing,” Gov. Gretchen Whitmer said. “Today’s announcement will create over 550 good-paying jobs and cement Michigan as the best place to build the future.”
FANUC America Plans $90 Million Pontiac Expansion
FANUC America Corporation will invest at least $90 million to construct an approximately 840,000-square-foot facility in Pontiac.
The robotics and automation company expects the project to create at least 225 jobs, ranging from entry-level manufacturing positions to advanced engineering careers.
The facility will support manufacturing, logistics, research and development and other industrial operations. FANUC also plans to invest in material-handling equipment, cranes, racking and other production infrastructure.
The Michigan Strategic Fund approved a $1.575 million performance-based Michigan Business Development Program grant for the project.
“For more than 40 years, FANUC America has manufactured robots in Michigan,” said Mike Cicco, president and CEO of FANUC America. “This investment will expand our engineering, advanced manufacturing, research and development and logistics capabilities, helping us meet growing demand for automation solutions throughout the Americas while further strengthening domestic manufacturing.”
The company currently employs 1,497 people across five Michigan locations. FANUC considered sites in other states before selecting Pontiac for the expansion.
The new facility will increase FANUC’s manufacturing and logistics capacity and could support production of additional industrial robot models. The investment will also advance the company’s development of automation and artificial intelligence-enabled technologies.
SAPA Transmission Investing $163 Million in Shelby Township
SAPA Transmission Inc. plans to invest at least $163 million to construct a 200,000-square-foot advanced manufacturing facility in Shelby Township.
The two-story facility will expand the defense manufacturer’s machining and production capabilities to meet demand associated with next-generation ground combat vehicles and long-term U.S. Army modernization programs.
The project is expected to create at least 328 jobs offering starting wages of $28 per hour plus benefits. That rate exceeds the regional median wage of $24.69 per hour.
The Michigan Strategic Fund approved a $5 million performance-based Michigan Business Development Program grant. The project also received a 15-year, 50% State Essential Services Assessment exemption with an estimated value of up to $1.42 million.
“With the support of the State of Michigan and the Michigan Economic Development Corporation, we have expanded our advanced manufacturing capabilities, strengthened our Michigan-based supply chain and invested in the workforce and technologies needed to support our nation’s defense,” SAPA Transmission President Darren Werner said.
SAPA considered locations in Ohio, Alabama, Pennsylvania and Texas before selecting Michigan. The company cited the state’s established defense manufacturing ecosystem as a deciding factor.
The project will redevelop a brownfield property while expanding domestic production of high-performance transmissions for military vehicles. It is also expected to strengthen Michigan’s defense supply chain and position the region for additional Industry 4.0 investment.
SAPA currently employs 60 people in Shelby Township. Its parent organization employs another 315 people in Spain.
Detroit Eastern Market Project Adds Housing and Retail
The Michigan Strategic Fund also approved support for the adaptive reuse of five parcels at 1401 Gratiot Avenue in Detroit’s Eastern Market district.
Busy Bee Development LLC plans to invest more than $12.56 million to redevelop vacant historic properties into 17 apartments and approximately 6,500 square feet of retail space.
Four of the apartments will be offered to households earning no more than 80% of the area median income. The project’s commercial spaces are expected to attract food-related businesses that complement Eastern Market’s existing tenant mix.
The development received approval for a $1.5 million Michigan Community Revitalization Program grant. Local support includes an Obsolete Property Rehabilitation Act tax abatement valued at approximately $887,331 and nearly $1.1 million through the local portion of an Act 381 work plan.
The property has been vacant since 2018. Its redevelopment will add housing and commercial space near Eastern Market, Ford Field, Comerica Park and other downtown Detroit destinations.
Erie Township Receives $8.5 Million Site-Readiness Grant
Erie Township in Monroe County will receive an $8.5 million Michigan Ready Sites grant to extend sanitary sewer service to more than 500 acres of potential industrial and commercial property.
The infrastructure project will serve the LAC site and neighboring properties along the development corridor north of Sterns Road. Sewer service is the final major utility needed to make the land fully development-ready.
The overall project is estimated to cost approximately $20.76 million. The state grant will primarily support design and construction of the sewer extension between Sterns Road and the southern edge of downtown Erie.
“This Michigan Build Ready Sites grant is a transformative investment that positions Erie Township for long-term economic growth by delivering the critical infrastructure needed to unlock more than 500 acres of development-ready land,” Erie Township Supervisor Mike Grodi said.
Future phases extending service through downtown Erie to Mason Eagle Drive will be funded separately.
Michigan Awards $11.27 Million to Small Business Support Hubs
The Michigan Economic Development Corporation selected 11 organizations to operate Small Business Support Hubs across the state.
The organizations will share approximately $11.27 million through the Small Business Support Hubs 2.0 Program. The network will provide entrepreneurs with access to capital, technical assistance, professional connections and other business-development resources.
The selected organizations are:
| Service area | Organization | Award |
|---|---|---|
| Region 1 | Michigan Tech Enterprise Corporation | $850,000 |
| Region 2 | Northwest Michigan Council of Governments | $697,500 |
| Region 3 | Northeast Michigan Council of Governments | $615,000 |
| Region 4 | West Michigan Hispanic Chamber of Commerce | $1,488,250 |
| Region 5 | Central Michigan University Research Corporation | $645,000 |
| Region 6 | Economic Development Alliance of St. Clair County | $880,000 |
| Region 7 | Lansing Economic Area Partnership | $675,000 |
| Region 8 | Southwest Michigan First Corporation | $930,000 |
| Region 9 | Ann Arbor SPARK | $1,250,000 |
| Region 10 | TechTown Detroit | $2,595,750 |
| Statewide | Small Business Association of Michigan Foundation | $650,000 |
The program attracted 115 applications. A 24-member evaluation committee reviewed 33 complete and eligible submissions before selecting one hub for each of Michigan’s 10 prosperity regions and one statewide organization.
Michigan Adds $3 Million to Startup Investment Fund
The Michigan Strategic Fund approved an additional $3 million for the Michigan Innovate Capital Fund, bringing the program’s total funding to $36 million.
Updated program guidelines will allow fund managers to offer purchase-order financing, bridge loans and other loan products in addition to equity investments.
The changes are intended to give early-stage Michigan companies more flexible access to working capital as they fulfill customer orders, expand operations and pursue private investment.
First established in 2023 with an initial $23 million allocation, the Michigan Innovate Capital Fund supports investment in high-potential startups across the state.
