The site of Derby Locomotive Works (the Works) was acquired in 1840 and was originally a facility for the repair of the Midland Railway Company’s railway vehicles: locomotives, carriages and wagons. Locomotive building started in 1851. In 1873 the company relocated the carriage and wagon works to a new site at Litchurch Lane, concentrating locomotive operations at the Works. Eventually, the Works occupied an area of 51 acres. After Grouping the Works became one of two major locomotive factories operated by the London, Midland and Scottish Railway (LMS) (the other being Crewe) and it continued to build locomotives following nationalisation. After 1947 the Works was initially part of the British Transport Commission – Workshops Division, subsequently passing to British Railways Board and then to British Rail Engineering Limited (BREL) in 1970. BREL was privatised in 1989 and the Works closed in 1990.

The Works produced its first modern traction, an 0-6-0 diesel shunter, in 1934 and in 1947 built the first mainline diesel-electric locomotive, No. 10000. Locomotive building continued until 1979 along with maintenance and repair. In the later period the Works also manufactured bogies for all traction types and overhauled breakdown cranes for all regions. After privatisation the Works concentrated on supplying bogies and components; locomotive activity ceased.