Otago Apparel, based in Kaikorai Valley, has been contracted by Earth Sea Sky Performance Clothing in Christchurch to make up to 250 waterproof jackets a year for the Department of Conservation.
Earth Sea Sky managing director David Ellis said the ongoing contract was worth about $50,000 per year to the company.
"It's fantastic that Doc have had the courage to go with something a little more expensive.
"A lot of Government departments are very careful about costs. Even though our jackets cost a bit more, in the long run they last a lot longer.
"It's very sensible. I applaud it."
Mr Ellis said the manufacturing of the jackets was on top of continuing contracts to manufacture about 100 Extreme Cold Weather (ECW) down jackets, Primaloft synthetic down quilted jackets and Salopettes (overalls) per year for staff at Scott Base - a contract worth more than $100,000 a year to the Dunedin manufacturer.
Otago Apparel was also producing 20 ECWs for staff in the Australian Antarctic programme to trial, and Mr Ellis hoped it would lead to a larger order by the Australian crew.
Staff at Otago Apparel have also been busy manufacturing 100 Primaloft jackets for Royal New Zealand Air Force crew and 10 Mountaineering jackets for the Westpac Rescue Helicopter crew, while continuing to manufacture high fashion garments for NOM*d and Mild Red.
"It's exciting times for Otago Apparel.
"It's very positive," he said.
Otago Apparel manager Elizabeth McKewen said work was hectic at the moment and staff were working overtime to keep up with production.
However, she could not say whether extra staff would be required to help fill the new orders at this stage.
"We're looking at different employment options to cope with the increased work," she said.