Coffs Harbour engineering company W E Smith says it is excited by the possibility of constructing parts for Australia's new fleet of 12 submarines, despite only recently coming out of administration.

The company recently concluded lengthy negotiations with the Australian Manufacturing Workers' Union after six months in administration, and is operating with a limited workforce.

Operations manager Harlan Cooper said the changed conditions had not affected the company's ability or willingness to take on new projects.

Three air-cooled heat exchangers built for submarines in 1990 by WE Smith, recently refurbished. ( Supplied: WE Smith )

"Going through administration is a tough process ... the situation we have now is temporary and we very much see the light at the end of the tunnel," he said.

"We are actually working with clients at the moment for aggressive bidding.

"When we win jobs we'll be increasing the workforce accordingly."

W E Smith has experience creating parts for Australian submarines.

In the late 1990s it built a series of heat exchangers and engine coolers for the six Collins class submarines operated by the Royal Australian Navy.

He said the new submarine fleet was a win for Australia's manufacturing industry.

"It's an absolutely wonderful announcement. We've seen a lot of manufacturing go overseas," he said.

"It's become a much harder environment for all Australian manufacturers to survive in.

"All of the workers have shown their determination at sticking with the company. We've been going for 94 years and hope to still be here in another 94."