AMARILLO, Texas (KVII) -- International Aerospace Coatings (IAC) is expanding its operations in Amarillo with a new $28 million hangar, one of only seven wide-body aircraft hangars in the company.

The expansion will enable IAC to service an additional 30 to 50 planes annually, in addition to the 180 jets that already pass through its Amarillo hangars each year. The new facility can accommodate large aircraft such as the Boeing 777X and 787s.

CEO Martin O'Connell said Amarillo was an ideal location for the expansion.

"We tend to look at where we've already got a footprint because the risk levels of going to a brand new, great field size where we don't have the employees or customers, risk levels are much higher," he said. "Having the scale of what we have here, the customers like coming here, the quality performance operations, it's kind of a no-brainer."

The expansion is expected to create up to 70 new jobs. Doug Nelson, interim president of the Amarillo Economic Development Corporation, said securing the new hangar is a significant achievement for the city.

"They were competing with this location against other locations they have worldwide. And because of our workforce and because of our cost of living, this was the location that they chose," he said.

O'Connell hinted at the possibility of further expansions in Amarillo, citing a strong demand in the market.

"There's not that many in the US in the market that we're in. So that's why there's a good, healthy demand there," he said. "And pretty much, you know, truthfully is we're having conversations probably now about where are we're going after this that we probably need in two and three years' time. But it's a very healthy kind of market to be in."

The hangar is scheduled for completion by late next year.