Garment maker Campbellsville Apparel Co was celebrating on Wednesday after it scooped a $9 million military contract.

The Kentucky-based company was awarded the deal by the Department of Defence and will now produce thousands of men's white and brown crewneck undershirts.

The four-year-old firm currently employs around 200 workers but is now considering taking on extra staff.

"This will help the area's economy and give Campbellsville Apparel and its workers a sense of pride that they are producing clothing for our soldiers fighting the war on terrorism," said US Senator Jim Bunning in a statement.

He added the company already has three contracts to make undershirts for the Army, Marines, Coast Guard and Air Force as well as briefs for several military divisions.