Xaloy Inc. announced it will spend $10 million to boost screw and barrel manufacturing through 1999. That follows a $12 million spending program from 1991-96.
The money will buy new metalworking and heat treating equipment to increase productivity and add capacity, Xaloy President Walter Cox said. Xaloy expects business to grow by 25-30 percent during the next three years, he said.
Capital spending this year will be $3.8 million, up from about $3 million in 1996. Cox said Xaloy will invest $3 million at its headquarters plant in Pulaski, Va., which makes barrels.
The company is buying three computer numerically controlled milling machines, an electric discharge machine and three new lathes.
Another $800,000 worth of new and refurbished machinery is going to Xaloy's screw factory in Newburyport, Mass., this year. Cox said about half the investment will go to metalworking machines and half to heat treating equipment. Included in the expansion is a new Schleif grinder.
Last year, Xaloy spent $2.1 million in pulaski and $1 million in Newburyport.
Xaloy is improving production of all types of barrels - small, medium and large.