Wrekin Construction went into administration in March
Up to 500 jobs may be created at the site of a Shropshire firm which collapsed with debts of nearly £21m.
Wrekin Construction, in Shifnal, went into administration in March but the site was bought by JN Bentley, a civil engineering company, this month.
The Yorkshire-based company said it wanted to expand the business after it signed a £40m construction contract with Severn Trent.
The firm said it hoped to fill between 250 and 300 positions by summer 2010.
JN Bentley said it had already offered some jobs to former Wrekin staff and further posts could be created within the next four years.
The new construction firm will be called Mott McDonald Bentley.
A spokeswoman added: "We're delighted to have exchanged contracts for the site at Shifnal, which meets our needs as we expand our business into the Shropshire area.
"This will become our regional contracting base when we complete the purchase on 12 June."
Wrekin Construction made 500 people redundant when it went into administration in March, owing £20.7m.
The "Gem of Tanzania" was thought to be the key asset of Wrekin Construction.
However, a creditor's report in April said that the £11m valuation of the 2kg ruby was based on a forged document.