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A Wapato company that manufactures Fiberglas and plastic products for military and mass transit uses is expanding and expects to add 100 jobs over the next three years.

Amtech Corp. in the Wapato Industrial Park wants to increase production capacity to serve unspecified new customers, a company official said.

Kim Brazell, senior vice president of finance, said a planned 11,000-square-foot expansion will allow Amtech to diversify its product offerings.

The production plant, at 180 E. Jones Road, currently comprises 110,000 square feet.

Amtech now employs 166 people. Most of the new jobs would be created on the production floor with average hourly wages of $13, according to the company’s application for a county grant.

The company hopes to begin construction in October.

Funding for the estimated $660,000 project is coming from the Yakama Nation and a county economic development board that uses a share of the state sales tax to support economic development.

The board, known as the Supporting Investments in Economic Diversification, on Thursday provisionally approved the company’s application for $330,000. Final approval is pending some additional information sought by the board.

Dave McFadden, president of the Yakima County Development Association, also known as New Vision, said he will ask for a more firm cost estimate for the project. The board will be asked to increase its grant amount if the cost estimate is higher.

McFadden provides staff support to the board.

State lawmakers several years ago created the sales tax funding mechanism for economically depressed counties with below-average incomes and above-average unemployment.

The funding source allows the county to retain about $1.8 million a year from the state share of the sales tax for projects primarily aimed at extending water and sewer lines and building roads to serve industrial property.

Board funding primarily is in the form of grants and loans that are repaid and used to fund future projects.

• David Lester can be reached at 577-7674 or dlester@yakimaherald.com