The component, which was developed in the company's own R&D department, will be installed in the large diesel engines used to power heavy working and construction machinery. Volvo will be the first to install the system into its machinery equipped with Deutz diesel engines.

Iskra Avtoelektrika hopes that the contract will help it enter this new and promising market segment which is expected to grow in the near future, as environmental requirements for car producers are stepped up.

The company, which makes electric motors and other electronic components for automotive and other industries, had been hit hard by the crisis in the automotive sector in 2008 and 2009, but has since been on a recovery path.

In 2010 it generated revenues of EUR 161m, 57% more than a year earlier. Last year also marked a return to profit for the company, which reported earnings of EUR 2.3m, after reporting a loss of EUR 17m in 2009.

The company has around 1,400 staff.