Michigan Strategic Fund Board Supports Defense, Agribusiness Projects Creating Over 460 New Jobs

LANSING, Mich. – The Michigan Strategic Fund (MSF) Board today approved two projects investing nearly $60 million combined between Imlay City (Lapeer County) and Holland (Allegan County) and creating over 460 jobs.

“The ‘Make It in Michigan’ economic development strategy is working, providing funds to our People to thrive in Michigan; to our Places taking the necessary steps to be vibrant and sustainable; and to our Projects, both new to the state and expanding,” said Quentin L. Messer, Jr., CEO of the MEDC and Chair of the MSF Board. “More work remains, yet daily, I become more determined to join with all Team Michigan to sustain this momentum in our pursuit for Michigan to be the best-in-North America for every economic opportunity.”

Defense Company Veptos Investing Over $19M in Lapeer County 

OVERVIEW: In production since 2010, Veptos assembles, repairs, refinishes, and modifies military armored vehicles. The company was acquired by Richard Najarian, president of Precision Global Solutions (in Troy, Mich.), in 2024, and will acquire a former bus manufacturing facility in Imlay City (Lapeer County) with the help of a $5 million Michigan Business Development Program (MBDP) performance-based grant approved by the MSF Board. In addition, Veptos plans to construct a 5,000 square-foot building for concept vehicle research and development.

The project will create over 420 new jobs and invest $19.67 million in Michigan. Starting wages for the project will be $21 an hour plus benefits, which is above the regional median wage of $20.61 per hour. In addition, the company offers internal training for all welding, general automotive mechanics, and vehicle painting, as well as industry certification for welding – so employees who start with the company can stay and grow with it, too.

Those interested in careers with Veptos can contact the company here.

WHY IT MATTERS: Michigan is experiencing notable growth and interest in both its defense and R&D sectors: Defense and aerospace alone generate about $30 billion in economic activity and support over 166,000 jobs. Veptos – world renowned for reimagining what’s possible in armored vehicle engineering, tactical mobility systems, and defense-grade powertrains – is currently entirely based in Texas, and their relocation to Michigan sends a powerful message that Michigan is ready to power the next generation of defense-tech giants through its talent, supply chain, and industry growth.

In April 2024, Governor Whitmer and the MEDC created the Office of Defense and Aerospace Innovation to help expand Michigan’s strong and strategic footprint in the defense industry. Since then, Michigan has secured significant wins such as the Michigan Maritime Manufacturing initiative, the expansion of a Michigan-based company in the Upper Peninsula due to  U.S. Department of Defense contracts, and more recently, earning a new mission of F-15EX fighters at Selfridge National Guard Base.

The state also celebrated its first-ever Uncrewed Triple Challenge, and Governor Whitmer signed an executive directive to establish the Michigan Advanced Air Mobility Initiative. Together, these programs and initiatives are enhancing Michigan’s longstanding strengths in manufacturing and defense, building out future potential opportunity.

WHAT THEY’RE SAYING:

“This deal marks a major step forward as we kick off new military programs in support of the U.S. Department of Defense and our allies across the globe,” said Richard Najarian, Managing Director of Veptos. “The facility brings Veptos’ full production capabilities to Michigan—supporting everything from our Tactimod reset programs to next-gen defense systems, armored platforms, and hybrid propulsion tech. Michigan blew us away with its deep talent, unmatched infrastructure, and motor spirit. It’s exactly where we need to be to execute at scale and meet the unprecedented demands shaping today’s global defense landscape.”

“This investment in the Detroit Region underscores the strength of our advanced manufacturing and defense ecosystem,” said Maureen Donohue Krauss, president and CEO of the Detroit Regional Partnership. “Our region’s world-class talent, strategic location, and deep automotive and mobility expertise make it the ideal place for companies like Veptos to scale and deliver innovative next-generation vehicle solutions.”

“This investment in Lapeer County highlights the robust potential of our local economy and manufacturing heritage," said Sam Moore, Executive Director of the Lapeer Development Corporation. "With our skilled workforce, strategic Midwest location, and strong community partnerships, Lapeer County is the perfect hub for innovative companies to grow and drive cutting-edge solutions, we are proud to be a part of this collaborate effort."

Hudsonville Ice Cream Expanding in City of Holland, Creating 44 Jobs

OVERVIEW: Hudsonville Ice Cream will expand in the City of Holland (Allegan County) with support from a $700,000 MBDP performance-based grant, investing at least $40 million and creating at least 44 new jobs with starting wages of $22 an hour plus benefits, above the Regional Median Wage of $21.97 an hour to accommodate a new contract.

The company also received approval for a 15-year, 100% SESA exemption with an estimated value of up to $599,275 for its $26.5 million eligible investment in Eligible Personal Property.

The projects will renovate or modify the existing dairy production room, create a new novelty bar production line, purchase new machinery and equipment, and make other improvements to capacity, plumbing, HVAC, and electrical.

Those interested in opportunities with Hudsonville Ice Cream should visit the “Careers” section on their website.

WHY IT MATTERS: By keeping the installation of a new production line cost-effective, Hudsonville can maintain its current contract with a global customer and jobs that would otherwise have to be idled by the end of 2026.

In 2022, the MEDC supported Hudsonville’s expansion plans with a $1 million MBDP performance-based grant, and today’s MBDP is another step in making what was once a local ice cream brand more widely recognized. It also helps Hudsonville grow in a steady and consistent manner – in fact, previous MEDC support has helped the company grow from 30 employees in 2016 to 258 currently.

In addition to its own brand, Hudsonville Ice Cream, the company manufactures ice cream for numerous regional, national, and global brands.

WHAT THEY’RE SAYING:

“Hudsonville Ice Cream is excited to announce the addition of a new production line at our facility in Holland, Michigan. This expansion provides our company with the opportunity to bring new jobs to the area and support continued growth in our community,” said Tina Floyd, CEO of Hudsonville Ice Cream. “We have proudly called the West Michigan region home for almost 100 years and are looking forward to the additional opportunities this new production line will create for our team, our partners, and our region.”

“The agribusiness sector is a vital part of our region’s economy, and Hudsonville Ice Cream is a standout example of how legacy companies continue to innovate and grow here,” said Jennifer Owens, President of Lakeshore Advantage. “With roots in our region for nearly a century, and a decade of remarkable growth, this company’s continued investment underscores their commitment to this region. Their expansion reinforces the West Michigan Lakeshore as a place where businesses can scale and succeed for the long term.”

“Hudsonville Ice Cream’s investment in Holland will strengthen our local economy and quality of life. Their decision to continue to invest in their Holland headquarters confirms what we already know—Holland is a great place to grow a business,” said Keith Van Beek, City Manager of the City of Holland. “The creation of more of high-wage jobs for Holland and surrounding area residents, and the capital investment spurred by this project is a major win for our local economy. We’re proud that Hudsonville Ice Cream continues to choose Holland as the place to grow their business and build their future.”

MSF Board Continues Support for Small Businesses, Venture Capital

The MSF Board also approved over $1.4 million in Match on Main program funds to 63 small businesses across the state. Match on Main supports new or expanding place-based businesses. Funding is administered by local entities – including local municipalities, downtown development authorities, or other similar organizations.

The FY25 Match on Main application process yielded a total of 133 applications from 59 communities – the highest participation rate in the program’s five-year history.

Since 2019, 157 small businesses have created 221 and retained 305 full-time jobs through partnerships with 80 unique community partners. Additionally:

• $4.5 million in funding has been contributed since 2019
• 91% of small businesses are still in business after the program
• $17 million in private investment has been leveraged from awarded businesses
• $58,200 in average annual revenue increases have occurred per awarded business

AUTO SUPPLIER PROGRAM: The MSF Board also approved funds for the Michigan Auto Supplier Transition Program (MASTP), designed to support suppliers in Michigan’s automotive manufacturing sector as they transition from production of internal combustion engines to electric vehicles and/or adjacent industries for the purposes of diversification and reindustrialization. The program was developed in partnership with the Michigan Department of Labor and Economic Opportunity’s (LEO) Community and Worker Economic Transition Office, as well as Next Street – a national consulting firm that works with public and private institutions to deliver solutions to small businesses.

The five subrecipients include:

• Michigan Minority Supplier Development Council
• University of Michigan Economic Growth Institute
• Automation Alley
• Michigan Manufacturing Technology Center
• Michigan Manufacturers Association

“The road to the future of mobility runs through Michigan, but only if we bring everyone along,” said LEO Senior Chief Deputy Director Jonathan Smith. “With bold initiatives like the Community & Worker Economic Transition Office and the Michigan Auto Supplier Transition Program, we are making sure small and diverse suppliers aren’t left behind as the industry evolves. With hands-on support, access to capital and guidance tailored to each business, Michigan is helping companies pivot, grow and lead in the fast-changing world of advanced automotive manufacturing.”

The collaboration builds on momentum of MEDC’s Industry 4.0 initiative, which, over the last five years has helped nearly 6,000 small- to medium-sized manufacturers modernize and stay competitive in the ever-evolving automotive industry.

“The Michigan Auto Supplier Transition Program will equip companies with the tools they need to lead in a new era of mobility, compete globally and create the good-paying jobs that will power our economy for decades to come,” said Kevin Mehren, director of the Michigan Infrastructure Office. “With support from the Make it in Michigan Competitiveness Fund, Michigan is taking bold steps to ensure our small and mid-sized manufacturers can benefit from and lead the state’s clean energy future.”

VENTURE CAPITAL: Finally, the MSF Board also approved up to $11 million in Small Business Venture Capital Program funding in the form of a limited partner investment in Venture Investors Health Fund 7 (Michigan) Limited Partnership. The Michigan Fund will be operated as a sidecar to the Companion Fund, following the investment decisions of the Regional Fund but allocated solely for investments within Michigan.

The Regional Fund is designed to invest equity in early-stage companies innovating in the healthcare sector. Its primary focus is identifying and investing in opportunities within the Midwest region.

About Michigan Economic Development Corporation (MEDC)

The Michigan Economic Development Corporation is the state’s marketing arm and lead advocate for business development, job awareness and community development with the focus on growing Michigan’s economy. For more information on the MEDC and our initiatives, visit www.MichiganBusiness.org. For Pure Michigan® tourism information, your trip begins at www.michigan.org. Join the conversation on: Facebook Instagram LinkedIn, and Twitter.