A number of unused buildings at the site are to be knocked down and rebuilt including the development of a new customer design centre for designers and client meetings. The £2m construction project is to be completed by December 2012.
API Holographics managing director Stephen Clarke said that the development of the customer suite would facilitate customer relationships, which are a "major part of our success".
The remaining £1m is being invested in a demetaliser machine that is being specifically developed for API Holographics to maintain security for bank notes. The company expects that the machine will be delivered by October along with its support system.
The project is to be finalised by June 2013. The redevelopment is intended to make more effective use of space at the Salford site while updating the technology used to produce API’s security holographics and cater to growing demand worldwide.
API Holographics managing director Stephen Clarke said: "This investment will ensure that we stay at the top of our game and can continue to provide our customers with the best possible integrated security solutions and excellent customer service."
The company has seen a growth in security markets across the world as the business has increased its international demand.
Clarke added: "The investment means that our home remains in Salford for the years to come.
"It will not only boost the local economy, UK manufacturing and provide jobs but also help us to improve efficiency and provide the perfect platform for growth."