Yellow Rail, the specialist rail engineering firm, is on the move to an iconic address in British rail manufacturing. The company has signed a long-term lease at the historic Litchurch Lane Works in Derby, currently in the ownership of Alstom. The relocation paves the way for expansion, innovation, and new job creation.
The move will more than double Yellow Rail’s workshop capacity and support the development of 25 new roles. It has been saluted as cementing Derby’s status as a powerhouse of rail industry activity and home to the UK’s only full-cycle train manufacturing site. The works has been in operation for almost a century and a half.
Making a future at a historic site
Yellow Rail, a subsidiary of the Buckland Rail group, will now call Derby’s iconic Litchurch Lane Works its home. The move gives the company room to grow its operations. It also places it at the heart of Europe’s largest rail cluster. The factory, first opened by the Midland Railway in 1876, continues to design, build and test rolling stock for both domestic and export markets.
“This is a transformative moment for Yellow Rail, said Paul Cunningham, Managing Director at Yellow Rail. “Relocating to Litchurch Lane not only gives us the vital space we need to expand our growing business. It also allows us to work more closely with Alstom and other industry partners to deliver cutting-edge solutions for our customers.”
Freight overhauls and fresh overalls
The company’s new base will allow overhaul operations for freight wagons and bogies to be scaled up significantly. Yellow Rail says it will also enable the integration of previously remote field service work into a centralised hub.
In practical terms, that means space to grow. The company is confident it will mean more jobs in the sector. “We are excited about the opportunities this move unlocks for our people, our partners and the wider rail community,” added Cunningham.
Backing from industry
Derby, which employs over 11,000 people across the rail sector, was selected in 2022 as the home of Great British Railways. The city is also developing a new industry cluster under the Rail Campus Derby banner. That initiative is designed to encourage investment, innovation and co-location among key players in the sector.
The announcement has been met with enthusiasm by both industry leaders and local politicians. Andy Butters, Managing Director of Derby Litchurch Lane Works at Alstom, welcomed the move as a reinforcement of Derby’s strengths and ambitions.“We are delighted to welcome Yellow Rail to our Derby site,” said Butters. “This collaboration is a first step to bringing Great British Railway’s plans for Rail Campus Derby to fruition.” GBR is the UK government’s plan to nationalise most of the railway industry, with its headquarters in Derby.
Move ahead of major celebration
“Yellow Rail’s move to Alstom’s Litchurch Lane site is a fantastic boost for Derby. Another clear vote of confidence in our city’s rail industry,” said Baggy Shanker, Labour MP for Derby South. “This relocation brings new skilled jobs to the area. [It] also strengthens Derby’s position at the forefront of UK rail innovation.”
Yellow Rail’s announcement coincides with preparations for “The Greatest Gathering“, a landmark event celebrating 200 years of rail heritage, hosted at Litchurch Lane from 1–3 August 2025. The transition from Yellow Rail’s current site elsewhere in Derby is expected to be completed by September this year.