A Lithgow company says it hopes to expand its export markets as a result of a contract with the Australian Defence Force.

Thales Australia has officially signed on to build rifles for the ADF and the deal will create 10 jobs and secure more than 100 existing positions.

The spokesman Graham Evenden said despite the company's history in supplying arms for the military, there has been recent success in the civil arms market.

He said there were plans to build the Lithgow brand internationally and tap into more global export markets.

"Absolutely, we've had some small export success with our civil product range already into the UK, we're certainly looking to widen that and to Europe and also into the US," Mr Evenden said.

Mr Evenden said the company was also considering diversifying its operations.

"It's been a very dynamic five years actually," he said.

"Ranging from Thales bringing in in-house design teams, and of course more importantly now that we've got this bedrock of the F88 sale to Defence, then obviously export is firmly on the agenda as well."

The Federal Member for Calare John Cobb said there is a lot of uncertainty in industries like manufacturing, but this contract is curbing this trend.

"They'll always ask for modifications, and I wouldn't be surprised if they don't keep modifying this weapon as time goes on," he said.

"But it's a good news story for our defence force, it's a good news story for our security and it's a damn good story for Lithgow."