A Chinese company has bought a controlling stake in London’s Diamond Aircraft plant, paving the way for production of larger aircraft at the factory and a possible doubling in employment over the next 18 months.

A deal was reached this month to sell 60 per cent of Diamond Aircraft Canada to Wanfeng Aviation, a division of a large Chinese conglomerate, Diamond Canada president Peter Maurer said Tuesday.

Under the deal, Diamond Aircraft, based in Austria, will transfer to London production of the DA62, a seven-seat aircraft dubbed the “Flying luxury SUV,” and the diesel version of the single-engine, four-seat DA-40.

All research and design of those aircraft will also be moved.

Diamond Canada sales of the aircraft will also expand from North America to a global market.

“It’s a terrific deal that secures our future. For the Diamond brand, its a win-win,” said Maurer.

Maurer said he expects the company could double its employment of 150 over the next 18 months. Diamond Canada is placing ads in aviation magazines recruiting for the new positions.

Speculation that Chinese investors were scoping out Diamond Canada had been around for years.

Maurer said the aviation industry is growing rapidly in China, its airspace opening up to private pilots after long being controlled by the military.

The small planes produced by Diamond are ideal for pilot training, said one industry observer.

“There is a vast and growing market in Asia for pilot training and they have to start somewhere,” said Charles Alcock, editor-in-chief of New Jersey-based Aviation International News.

Chinese investors are often viewed with suspicion, especially lately with the rhetoric of U.S. president-elect Donald Trump. But Alcock said Chinese involvement can provide a big boost to business.

“There is potential for a win-win.” he said. “If the Chinese are involved, it doesn’t mean it’s sinister.”

Wanfeng is a large publicly-traded company, and Maurer said Wanfeng is already a player in the London area. It also owns the Diamond Flight Centre at the London International Airport and in 2013 it acquired Meridian Technologies, a metal castings plant in Strathroy.

Wanfeng’s acquisition of Diamond Canada won’t affect Diamond’s operations in Austria, which will continue to operate independently with new projects on the books.

The price paid by Wanfeng for the 60-per-cent stake in Diamond Canada wasn’t disclosed and Maurer wouldn’t comment on the ownership structure of the remaining 40-per-cent stake in the company.

Along with new models, the London Diamond plant will continue to produce the two-seat DA-20, and the gasoline version of the four-seat DA-40.

The plant also makes frames for the Dornier Seastar, a 12-passenger amphibious plane.

Maurer will continue as president of Diamond Canada, but Frank Chen of Wanfeng will become chairperson of the board.

Maurer said the sale to Wanfeng required approvals from the federal government, but the deal has been finalized.

Diamond has a licensed manufacturing plant in China producing the DA-40 four-seat aircraft. The plant will continue to produce that model, but only for the Chinese market.

In the spring of 2010, Diamond suffered a major setback after the federal government refused its request for a $35-million loan to aid in developing its D-Jet, a personal jet aircraft. The plant struggled for years, laying off about half its 400 workers, but has bounced back with new work in recent years,

Maurer said the company isn’t ruling out a revival of the D-Jet program but said it

“It’s a beautiful airplane and we were 70 per cent through the program when it was suspended. A lot of people here would love to see it come back at some point,” he said.

hdaniszewski@postmedia.com

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Diamond Aircraft Canada

— London aircraft and parts maker.

— Manufactures DA-20 two-seat aircraft and DA-40 single-engine, four-seater.

— Makes frames for the Dornier Seastar, a 12-passenger amphibious plane.

— Opened in 1993 as Canadian subsidiary of company headquartered in Austria

Wanfeng Aviation Canada

— Division of a large publicly-traded Chinese conglomerate.

— Corporate parent involved in auto parts, aircraft manufacturing, robotics and financial services

— Already has a foot in the region, in Meridian Technologies in Stratford and the Diamond Flight Centre, a flight training school not associated with Diamond Aircraft Canada.