Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, December 21, 1993 TAG: 9312230002
SECTION: CURRENT PAGE: NRV1 EDITION: NEW RIVER VALLEY
SOURCE: PAUL DELLINGER STAFF WRITER
DATELINE: PULASKI LENGTH: Medium
It's already dated.
That's how fast things change in Magnox's world.
Magnox is the largest center in the Western world in the research and production of magnetic particles used for applications ranging from recording sights and sounds to magnetic strips on credit cards. Its manufacturing facilities are in Pulaski, but it also maintains offices in Europe and Asia.
It exports 60 percent of what it makes to 85 customers in 60 countries, and reinvests 10 percent of its gross revenue into more research and development.
``And that's significant. That's what it takes to stay out in front,'' said Jim Stewart, director of the Center for Innovative Technology at New River Community College.
``They are a very progressive and active company and, as such, have become a significant player in their market,'' said Stewart, who has followed the Magnox fortunes since becoming CIT director in 1987. ``A lot of that has to be attributed to the forward-looking approach that they've taken.''
That is the only way Magnox can hope to stay near the top of this constantly changing industry, says Hiawatha Nicely, vice president for operations. Magnox was seventh in the world among the industries in its field in 1986, based on such measurements as sales capacity, and is now third behind two major Japanese companies.
The past year was somewhat slower for Magnox than other recent ones have been, with European nations restructuring their economy and the recession hitting the United States and Japan. Magnox had contingency plans for layoffs.
As of December, those plans were withdrawn. In fact, the plant is working through the holidays to meet new commitments made in November.
Pacific Rim and Third World countries have become new customers and stabilized Magnox, Nicely said, ``and 1994 looks like it's going to be a good year.''
He credited the company's marketing group for seeking out the new customers, and its research and development group for new products to meet their needs. ``And of course our production here is second to none, in my opinion, anywhere in the world,'' he said.
Twenty percent of Magnox's employees are in its technical department.
Magnox is now looking at a 5 percent increase in employment by mid-January, bringing the total to 185 employees.
``These are people who have some technical capability,'' he said. ``It's a great argument for staying in school. New River Community College just does a tremendous job for us in continuing education.''
Magnox also works with Virginia Tech and the state's Center for Innovative Technology in Northern Virginia. ``We're not bashful when it comes to looking for resources,'' Nicely said.
Nicely has a street sign on a bookshelf in his office showing the intersection of W. Main St. and Altoona. It's no longer West Main, but Magnox Drive, so named to honor the plant that has brought so many international visitors to Pulaski
Another change: The Magnox offices have been moved from a building on the manufacturing site across the street into the former Calfee School. The offices not only include personnel, accounting, communications and other offices moved over from the plant, but a new visitors conference room.
Magnox spun off from Hercules when the arsenal was divesting itself of nondefense work, and a group of Hercules employees bought it.
``Our company has always been, even back in the days of Hercules, very quality oriented,'' Nicely said. ``That's the reason we're still here today.''
Magnox is working on two expansions - one costing $10 million, to handle a new product created this year, and one budgeted at $3 million for a project started in August aimed at carrying the company into the next century. It is also expanding its raw materials processing.
The expansions don't reflect more production, but enhancing the quality of the items produced.
Besides buying the former school building from Pulaski County in 1989 to renovate it into an office building, Magnox has built a new employees parking area, moved its entrance away from where it had to cross a railroad track to the Calfee School side of the plant, built a new water-processing plant to achieve the standards of purity needed for water in its manufacturing process, carried out three expansions at once and is adding employment.
``We've been busy,'' Nicely said.
by CNB