An Israeli defense company's American arm has chosen Sterling Heights over competing sites in Florida and Virginia to build a $5 million facility that will design, build, and test counter-drone systems and remote-controlled weapon stations. Governor Gretchen Whitmer announced that Capture Group will develop the production and operations hub in the Macomb County city, with the project expected to create at least 125 jobs.
The facility will serve as a marketing base and a center for development, integration, and testing of advanced counter-drone systems and remote-controlled weapon stations, according to Manufacturing.net. Production lines planned for the site will cover mobile defense systems, counter-UAS platforms, and optical surveillance systems. Capture Group, established in 2026, is the U.S. entity of Capture Systems Ltd., an Israeli-based company specializing in defense and homeland security systems, the outlet reports.
Avi Braun said the new manufacturing and engineering hub represents a major milestone in the company's global expansion strategy, according to the same report. The company has developed counter-unmanned aircraft system platforms capable of detecting, identifying and neutralizing airborne threats. Its parent, Capture Systems Ltd., is headquartered in Petah Tikva, Israel, and produces modular multi-axial positioners, remote-controlled weapon stations and counter-UAS platforms including CapGuard and the Anti-Threat Intelligent Detector, per Capture Systems.
A $936,000 Incentive Tied to Hiring Milestones
The Michigan Strategic Fund awarded Capture Group a performance-based Michigan Business Development Program grant amounting to $936,000. That grant is administered by the Michigan Strategic Fund and requires verified job creation and capital investment before state funds are disbursed, according to the Flint and Genesee Economic Alliance. The program includes clawback and milestone provisions designed to protect state investment if hiring targets aren't met.
The project is expected to create 125 qualified jobs over a five-year period, with expected starting wages of roughly $25 an hour plus benefits, according to disbursement terms detailed by the State of Michigan. Because the incentive is performance-based, the pace at which those jobs materialize will determine how much of the state grant actually gets paid out.
Following Rafael's Lead Into Macomb County
Capture Group is not the first Israeli defense firm to plant a flag in Sterling Heights. In June 2025, Rafael Advanced Defense Systems established a technology and management headquarters for its U.S. proxy, Rafael Systems Global Sustainment, at the Velocity Center in the same city — Hoodline's earlier coverage detailed that move.
The region's pull for defense manufacturers is backed by real numbers. In 2024, defense contractors in Macomb County secured more than 4,800 federal contracts valued at $3.2 billion, contributing to a total historical defense contract volume exceeding $65 billion for firms based in the county, according to statistics compiled by the Michigan Economic Development Corporation. General Dynamics Land Systems, which has run its primary land combat development hub in Sterling Heights since 1987, completed a multi-million-dollar modernization of its headquarters there in June, a facility that houses nearly 2,000 employees working on the Abrams tank and Stryker infantry vehicle, per General Dynamics Land Systems.
Local Governments Are Actively Recruiting
Sterling Heights and neighboring Warren aren't waiting for companies to find them. In March, the two cities approved a three-year, $1.33 million advisory contract with AECOM Great Lakes Inc. under their joint Arsenal Alliance initiative to manage regional defense growth and attract contractors, according to C & G Newspapers. That followed the Arsenal Alliance's initial launch, which Hoodline covered when the two cities first announced their partnership to expand southeast Michigan's defense footprint.
Nearby Macomb Township is seeing similar activity. CQT Weapon Systems announced a $23.7 million expansion there in June to construct a 24,000-square-foot facility dedicated to precision machining, weapons assembly and unmanned aerial vehicle engineering, according to Area Development. Michigan state officials estimated in February that the defense and aerospace industry contributes between $30 billion and $31 billion annually to the state's economy.
State leaders have also pointed to Camp Grayling in northern Michigan as an expanding testing site for uncrewed aerial systems and counter-drone research, according to MIRS News, positioning the state as an end-to-end pipeline from manufacturing to field testing. Whether Sterling Heights residents will see a construction timeline or a specific site address for the Capture Group facility remains to be seen, as does how the public will respond to state incentives flowing to a foreign-owned defense manufacturer.
