The Pacific Rim sequel may still happen, according to director Guillermo Del Toro. Despite reports last week that the project had been “shelved,” Del Toro has now stated that this is not the case. The film has also been thrown an additional lifeline by the news that Legendary Pictures, the production company behind the films, has been sold to a group in China, where the first movie was a big hit.

Del Toro tweeted on the subject yesterday, stating:

The sale of Legendary Pictures to the Chinese conglomerate Dalian Wanda Group for a massive $3.5 billion is one reason to remain hopeful that Pacific Rim 2 might yet happen. Although the domestic gross for the first movie was disappointing, in China it proved extremely popular. It opened with the sixth biggest gross ever for a Hollywood movie, and ultimately earned more than a third of its entire international gross in China.

Legendary is also the producer of the forthcoming big budget game adaptation Warcraft, as well as the likes of Godzilla, Inception, Man of Steel, and Jurassic World. In a statement, chairman and chief executive Thomas Tull said: “Together, Wanda and Legendary will create a completely new international entertainment company. There is an ever growing demand for quality entertainment content worldwide, particularly in China, and we will combine our respective strengths to bring an even better entertainment experience to the world’s audiences.”

Last week, it was also reported that Del Toro was in talks to direct a remake of sci-fi classic Fantastic Voyage. He is also developing a new animated show called Trollhunters for Netflix.