The deal, worth EUR 40 million, will make the Slovenska Bisrica-based group BMW's direct supplier for at least five years, the Slovenian company has told the STA.

To meet the demand, Impol will build a new production facility spanning 3,000 square metres in Slovenska Bistrica.

The company is now seeking to obtain a building permit and plans to launch construction work in the second half of the year.

The investment is estimated at almost EUR 6.5 million, of which almost EUR 4 million will be spent on new equipment.

Production is meanwhile expected to be launched at the end of 2020 or at the beginning of 2021.

Impol will be the only supplier of aluminium rods for BMW's new electric SUV which is expected to hit the market in 2021.

The company will have to employ several dozen new workers (in production, logistics and quality control) and is hoping to further expand the cooperation with BMW.

Earlier this month, it launched a new production line for the automotive industry at its Croatian location in Šibenik.

Impol makes a wide range of aluminium products, from rods and tubes to sheets, slugs, strips and cast aluminium. Its products are used in the automotive, construction, food&beverage and energy industries.

Last year the group, which sells its products to 50 different countries, generated EUR 728 million in sales abroad, of which EUR 614 million in EU countries.

Its most important market is Germany, accounting for almost a third of its sales abroad. The company plans a 9% rise in sales revenue generated abroad for 2019.