The group invests about 5% of revenue in R&D and has been seeing an increase in innovation among its 1,200 employees. The company recorded an average of three innovation proposals per employee last year.

On Tuesday, the group gave out awards to the best innovators among its staff, with chairman Marko Gorjup saying that innovation processes were integrated in the production process itself.

The innovation drive of the staff is highly valued, as the group strives to follow high-tech global trends, said Gorjup.

The deals with BMW and Volvo will require additional 300 workers in the coming years. Last year, the group already hired 40 new employees.

In 2019 it plans to hire only highly-skilled staff, as robots are doing much of the work on the production floor. The group expects to see a 5% increase in business operations this year.

While the production of structural chassis parts for BMW has recently been launched, the group will start making parts for Volvo's electric cars next year.

TPV generates most of its revenue in Sweden, the US, Germany and the UK. It also exports to South Africa and China. Its buyers include BMW, Mercedes, Daimler, Renault, Rolls Royce, Jaguar, Volvo and Volkswagen.