Diamond Aircraft is absorbing eVTOL aircraft developer Volocopter after its Chinese owner Wanfeng agreed to acquire the company’s assets from a court-appointed insolvency administrator. On March 14, Volocopter issued a statement saying it is being integrated with Austria-based Diamond Aircraft Industries but will continue to operate from its headquarters in Bruchsal, Germany.

According to a Chinese stock market statement, automotive and aviation group Wanfeng is paying just €10 million ($11 million) to buy Volocopter’s assets and intellectual property, while taking on its contractual and employment obligations. The statement valued assets at €42 million, including prototypes of its two-seat VoloCity eVTOL model, for which the company is targeting EASA type certification this year.

Up to 185 Volocopter employees will be retained under the new ownership. When the company started its insolvency process on December 26, almost 500 people were on the payroll.

Diamond and Wanfeng have indicated that they will invest several hundreds of millions of dollars in Volocopter, including the value of assets and staff salaries. The process of restarting the workforce could take some time, because almost all employees had to take gardening leave from March 1 under German insolvency laws.

According to the statement, the reorganization of Volocopter by Diamond Aircraft Industries from its headquarters in Wiener Neustadt near Vienna will “broaden its aircraft and business portfolio into the field of electric urban air transportation, while enabling Volocopter to reduce costs, retain a highly motivated and skilled workforce, and focus on achieving its certification milestones by 2025.”

Diamond Aircraft is a subsidiary of the Wanfeng Aircraft Division of Wanfeng Auto Holding Group. It is developing an electric version of its DA40 light aircraft, which is powered by Safran’s EngineUs motor.

“The future of aviation is shaped by visionaries,” said Diamond Aircraft chairman Bin Chen. “Diamond’s broad portfolio is further strengthened by Volocopter, the VoloCity, and future models. Together, we are creating a foundation to further develop sustainable air mobility and strengthen Europe as an innovation hub in aviation.”