DALLAS—Texas factory activity increased in March, according the Texas Manufacturing Outlook Survey. The production index, a key measure of state manufacturing conditions, rose from 6.2 to 9.9, indicating a slightly faster pace of output growth.

ELMIRA, NY—Kennedy Valve is reshoring production of its rotating disc gate valves to its assembly plant here after experiencing delivery problems with its Thailand supplier.

MUNCIE, IN—Automotive supplier Magna Powertrain is planning to invest $11.5 million in its assembly plant here.

TOKYO—Mitsubishi Motors has reported overheating problems with lithium-ion batteries made by the same company that supplied the malfunctioning batteries for Boeing’s Dreamliner.

WASHINGTON—Some 37 states have applied to the Federal Aviation Administration to become one of six test hubs for commercial unmanned aerial vehicles.

MOBILE, AL—Airbus will begin construction of its assembly plant here April 8. Aircraft production is set to begin in 2015 with the first aircraft delivery in 2016.

ALBUQUERQUE, NM—Sandia National Laboratories and Caterpillar Inc. have signed a cooperative research and development agreement, opening the door to a wide range of scientific research.

SEATTLE—Boeing Co. says the first flight test of its reworked battery system for the 787 Dreamliner went “according to plan,” enabling it to move on to formal testing. The successful mission Monday means Boeing can conduct a second flight test.

DANVILLE, VA—Macerata Wheels will invest $8 million to establish a custom wheel manufacturing plant and distribution center here, creating 100 jobs.