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There are two ways to defined factory beans in Spring.

1. Where you have a factory class or manager, which has static methods to return instances of various classes. For eg:
public class MyFactory {
public static ClassA getClassAInstance(){
….
return new ClassB();
}

public static ClassB getClassBInstance(){
….
return new ClassB();
}

}

the xml configuration would be:

2. The second approach is when you have a class which has non-static methods to return instances.
public class MyFactory {
public ClassA getClassAInstance(){
….
return new ClassB();
}

public ClassB getClassBInstance(){
….
return new ClassB();
}

}

In this case the xml configuration would slightly change to have another bean, which is then accessed in the other bean definitions.

HTH