Wanganui company W and W Construction has won part of the contract to refurbish Whanganui Prison at Kaitoke and it is worth more than $12 million.
The Government announced the upgrade as part of an $81 million refit for five prisons around the country.
The Whanganui fit out is worth $22 million and W and W Construction will be involved on work in the east and west wing at the prison.
Glenn Wadsworth, company principal, said the contract would run for about 18 months and would involve 10 to 12 of his staff.
"But we'll be using a lot of local sub-contractors for the job and that's got to be good for the city," he said.