The deal means TPV is expanding its presence on the market of electric vehicles and should create more than 100 jobs in the next few years, TPV said on Wednesday.

It involves the development and production of chassis and bodywork segments which will support and protect electric motors.

The deal makes the Novo Mesto-based group a key supplier of the Swedish car producer, which is in Chinese ownership, in the segment of electric cars.

As part of it, TPV will also enter more decisively "the segment of aluminium products, introducing a set of state-of-the art technologies".

TPV chairman Marko Gorjup said that 2018 had been a record year in terms of new deals.

"By winning these major deals with leading premium car producers such as BMW and Volvo Cars, we have strengthened our position as a key development supplier for the automotive industry."

Gorjup believes the strategic cooperation with Volvo Cars is an opportunity to expand business in all of the world's key markets for TPV.

The group's main markets are Sweden, the US, Germany and Great Britain, as well as South Africa and China.

In spring, BMW chose TPV as an exclusive supplier for the structural chassis segment. The production is planned to be launched in a few years' time.

The company said that more than six million BMW vehicles will have its state-of-the art product installed.

The Slovenian group employs more than 1,200 workers and generated EUR 153m in revenue in 2017, up almost 10% over 2016.

The group spent some EUR 10m on investments last year, mostly to enhance automation and robotisation.

Its major clients apart from Volvo and BMW are Brose, Benteler, Faurecia, Mahle, Daimler, Renault, Rolls Royce, Jaguar, Volkswagen and others.

The group consists of the Novo Mesto-based parent company, two subsidiaries in Slovenia (TPV Avto, TPV Prikolice) and one in Serbia (TPV Šumadija).