Chinese aviation giant AVIC International has bought the assets of the bankrupt Thielert Aircraft Engines.
AVIC also owns Continental Motors and has formed a new company, Technify Engines, to produce the Centurion range of diesel engines for general aviation.
The new company will market 135, 155 and 350 hp engines burning Jet-A fuel.
Thielert Aircraft Engines was declared bankrupt in 2008 and has been under administration ever since. Last month, founder and CEO Frank Thielert was arrested and is being held over charges of misrepresenting the company's value to potential investors.
AVIC International also owns Cirrus Aircraft and builds Cessna and Embraer commerical aircraft in China under joint venture agreements.