Delta Hydraulics chief executive officer John White said the new nuclear-powered submarines that will begin construction in South Australia in the late 2030s would require hydraulic components akin to the ones he is already supplying to the Australian Submarine Corporation.

"The fluid dynamics of a submarine are the same for any vessel, it doesn't matter how it's powered ... so we will certainly be putting our hand up to tender for any of the hydraulic requirements the same as we did for the Collins," he said.

READ MORE: Man dies at a festival called PANAMA

Mr White said that, if successful, a contract to supply the AUKUS submarines could be worth about 10 per cent of his company's current revenues.

But he said the project also offered an opportunity for other Tasmanian manufacturers to supply components to the subs and share in the multi-billion dollar pie.

"There are many, many, different levels of supply into the manufacture of a submarine, whether it be internal panels or stainless steel clamps ... there's many different types of products, there are masses of opportunity," Mr White said.

Speaking about AUKUS on Tuesday, Defence Industry Minister, Pat Conroy, called the project the "greatest industrial undertaking the nation has ever attempted".

"It will create around 20,000 jobs ... and these figures do not include the supply chain jobs of tier-two and tier-three suppliers who will inevitably work on the project," Mr Conroy said.

Just some of the components in that supply chain will be built in South Australia, with others either imported or built in other states, including Tasmania, where a number of companies are already supplying components to the Navy.

READ MORE: Serious damage caused by break in at Beaconsfield processing plant

The AUKUS submarines are not the only defence contract in Delta Hydraulic's sights.

The company is a member of Korean company Hanwha Group's tender for a giant contract to build up to 400 infantry fighting vehicles for the Australian Army.

That $27 billion contract is due to be announced this year, and could have big implications for Tasmanian industry, Mr White said.

Our journalists work hard to provide local, up-to-date news to the community. This is how you can continue to access our trusted content: