The situation at Miles Platting was eased once the new carriage works at Newton Heath was opened in 1877, which allowed the locomotive department to take over the space at Miles Platting formerly occupied by the carriage and wagon department, which itself had largely been destroyed by fire on 27 April 1873 and rebuilt later that year. Following this expansion, it was possible to build additional locomotives at Miles Platting, and forty of the 528 class were built during 1878–81, but these were the last new locomotives built there. Space was still tight, and there was no room to expand the works any further, since the surrounding area was fully occupied with other buildings, including houses. In 1883, John Ramsbottom, the former locomotive superintendent of the London and North Western Railway (LNWR), was engaged by the LYR as "Consulting Engineer in matters relating to the Locomotive Department" and toured the whole LYR system with Barton Wright, looking at all the repair facilities. Ramsbottom gave his advice to the LYR Board on 19 March 1884, and it was decided to build a new locomotive works in open country, where expansion would be easier. Various potential sites were examined by Ramsbottom and Barton Wright, and at a meeting on 21 May, they were informed by Elias Dorning, the LYR land agent, of an estate of at Horwich. Ramsbottom, Dorning and Barton Wright went to examine the land, and having reported back to the Board, Dorning was authorised to purchase it for not more than £65,000. At an auction on 27 May 1884 he bought the land for £36,000. Together with Ramsbottom, Barton Wright began planning the new locomotive works, and construction began the following year. But before Horwich Works was ready to begin construction and repair of locomotives, Barton Wright tendered his resignation on 23 June 1886. Aspinall was appointed to succeed Barton Wright on 14 July 1886, with the new title of Chief Mechanical Engineer (a title which had previously been held by only one other person, Francis William Webb, Ramsbottom's successor on the LNWR). Locomotive repair at Horwich began on 15 November 1886; new construction commenced in January 1888, and the first new locomotive was delivered on 20 February 1889.