SAPA Transmission to Invest $163 Million in New Defense Manufacturing Facility in Shelby Township, Michigan

SAPA Transmission, a maker of combat vehicle mobility systems, announced in July 2026 plans for a new advanced manufacturing facility in Shelby Township, Macomb County, Michigan, with a capital investment of at least $163 million and at least 328 new jobs.

200,000-square-foot plant

The 200,000-square-foot facility at 50770 Birch Drive will house expanded machining operations, doubling the company’s machine cells from three to six and enabling in-house production of gears, planetary carriers and bevel gears. It will support high-performance transmissions for U.S. and NATO military fleets, including the Abrams Main Battle Tank and future Army mobility platforms.

State support

The Michigan Strategic Fund approved a $5 million performance-based grant through the Michigan Business Development Program, along with a 50% State Essential Services Assessment exemption for 15 years valued at up to $1.42 million. SAPA, part of the Basque industrial group Sapa from Andoain, Spain, considered sites in Ohio, Alabama, Pennsylvania and Texas before choosing Michigan.