By the early 1990s Hornby again faced competition from newcomers such as Dapol and established foreign manufacturers, including Lima and Bachmann Industries. Manufacturing was moved to Guangdong province in China in 1995, completed by 1999, in a cost-cutting exercise.On The Right Track , China-Britain Business Council, 2005 As part of the process Hornby also bought in some of Dapol's products and also some of the old Airfix moulds (by then owned by Dapol). Train sets based on Thomas the Tank Engine and Friends and Harry Potter (the "Hogwarts Express") have been particularly profitable ventures. In September 2003 Hornby released its first steam-powered 00 gauge locomotive, a model of the record-breaking Mallard. Several other "Live Steam" locomotives have now been produced.
