The deal is worth a total of EUR 25m, Hidria's Car Industry Institute head Rudi Kragelj told the press. He expects the company will triple its production by 2020.

CEO Iztok Seljak told the press on Wednesday that the cold ignition system being developed by experts at subsidiary Hidria AET is characterised by high energy efficiency and low emissions.

"PSA Peugeot Citroen has given us an opportunity in 2004 by entrusting us with developing solutions for Peugeot 207 steering system. Based on that excellent experience we are now upgrading our cooperation," Seljak said.

Seljak moreover said that Hidria plans to become the leading producer of steering system solutions in Europe within five years.

Boštjan Bratuš, the vice chair of the management board, told the press that the company had invested around 15% of its annual revenue in R&D over the past years.

Bratuš added that the company's results reached pre-crisis levels already in 2010. In the next five years the company plans significant investment in the production of engine ignition systems.

In January, the company will also launch a technology centre in Koper, which will employ some 30 people. The investment amounts to around EUR 3m.

This year, the company expects to generate EUR 300m in revenues. In 2012, the company closed deals worth EUR 16m, according to Kragelj. Next year, they expect a 5-10% growth.