Dubow Textile Inc. is expanding for the third time in five years, this time building a $1.5 million addition onto its St. Cloud factory and hiring another 20 workers over three years in an effort to meet growing demand for its customized embroidered and screenprinted clothing, company and state officials announced Friday.

The 21,000-square-foot addition will be built at Dubow’s current Lincoln Avenue facility, which now houses 75 employees.

The state is assisting in the cost of the project. The Minnesota Department of Employment and Economic Development (DEED) said Friday that it has approved a $176,575 Job Creation Fund grant for the company. However, Dubow will only receive the money after it completes its investment and hits its hiring targets. New hires are expected to receive a wage of more than $13 an hour.

Dubow Textile’s revenue was nearly $7 million last year and is on pace to reach $10 ­million by 2018. The company makes custom uniforms, polo shirts, sweatshirts and hats.

“Dubow is growing rapidly thanks to its strong commitment to customers and investment in technology,” said DEED Deputy Commissioner Kevin McKinnon. “This latest expansion will enable the business to meet current market demand and accommodate future growth.”

St. Cloud Mayor Dave Kleis said in a statement: “We are pleased to work with Dubow Textile to assist their recent expansion and continued investment of employment and tax base in St. Cloud’s east side neighborhood.”

In 1991, company owners Rob and Robin Dubow bought an embroidery company named Negaard Lettering from a friend. They renamed it Dubow Textile Inc. and have since transformed it into one of the largest custom garment decorators in the Upper Midwest.

Six months after buying the business, the Dubows moved the operation to a 3,500-square-foot production facility. In May 1994, they expanded again, building a 22,000-square-foot factory and boosting their staff to 60 workers. The company added another 12,500 square feet in 2011 and 6,500 square feet in 2013.