China’s AVIC acquires German aero engine maker Thielert

China's biggest aerospace manufacturer Aviation Industry Corp of China (AVIC), has struck a deal to acquire Thielert Aircraft Engines GmbH, strengthening its portfolio of aircraft engines.

AVIC and Thielert did not provide the financial details of the deal , which is expected to be completed by March 2014.

AVIC International Holding Corporation (AVIC International) acquired the diesel aircraft engine and manufacturing assets of Thielert through its subsidiary, Technify Motors GmbH, said Ma Fu'an, chairman of the AVIC board of directors, in St. Egidien in Saxony, Germany, on Tuesday.

Thielert, which manufactures Centurion 2.0 series of 135 and 155 hp Jet-A engines and Centurion 4.0, 350 hp engines,  had filed for insolvency on 24 April 2008.

The company has a distribution and warranty business, called Centurion, created as part of the German bankruptcy regulations. Both will now be under the Technify Motors banner.

Rhett Ross, Continental Motors Inc, president, said in a special AOPA Pilot report on diesel technology that his company has staked its future on diesel engines.

''AVIC International's acquisition of Thielert's assets rounds out the highly successful and popular Continental Motors' line of gasoline engines acquired by AVIC International in 2011'', said Yu Yimin, senior vice president of AVIC International, and CEO of Continental Motors.

''It is also the right long-term solution for the market as this creates a 'one stop shop' for both AVGAS and Jet-A engine solutions backed by the global support capabilities of Continental Motors,'' Yu added.

AVIC had already acquired Minnesota-based aircraft maker Cirrus Aircraft and engine producer Continental Motors Inc of Alabama.

AVIC had also planned to buy Thielert's military business, whose biggest customer is US-based drone maker General Atomics. However, it did not succeed because of its lengthy procedures to get the approval of the German economy ministry under foreign-trade law.

Thielert has posted about €25 million ($32.98 million) of sales last year. It has three German sites and over 200 employees.

AVIC International was set up in 1979 and is owned by the Chinese government through AVIC. AVIC International reported Chinese yuan 120 billion (about $19 billion) in revenue in 2012.

Continental Motors Inc., a wholly-owned subsidiary of AVIC International is a leading manufacturer and service provider of certified piston aircraft engines and components used in propeller- driven general aviation aircraft engines for more than 80 years. AVIC International acquired Continental Motors in 2011.