The Vulcan Foundry was originally opened in 1830 at Newton-le-Willows, as Charles Tayleur and Company. It initially produced girders for bridges, switches and crossings, and other ironwork following the opening of the Liverpool and Manchester Railway. Robert Stephenson became a partner in 1832, and in the same year, the first locomotives ‘Tayleur’ and ‘Stephenson’ were delivered to the North Union Railway. By 1840 locomotives had been delivered to five European countries and to North America. The company became The Vulcan Foundry Company in 1847 and acquired limited liability in 1864. From the beginning of 1898, the name changed again to The Vulcan Foundry Limited, dropping the word 'company.' Vulcan locomotives were exported all over the world, with the first locomotives for Russia and Japan supplied in 1837 and 1871 respectively and a long association with India began in 1852. First World War production included shells, gun mountings and mine sweeping equipment. The first non-steam locomotive, an electric, was produced for India in 1929. The first diesel locomotive design commenced in 1932/33 and an agreement was reached with A/S Frichs in Denmark. The English Electric 6K engine was used from this time. The “Waltzing Matilda” tank was developed in 1938 and produced in large numbers and over five hundred ‘Austerity’ steam locomotives were produced for the War Department. Other wartime production included gun mountings and torpedo parts. In 1944 Vulcan acquired the locomotive business, Robert Stephenson & Hawthorns Ltd, based in Newcastle-upon-Tyne. In 1946 the company began working with the English Electric Company producing diesel and electric locomotives and became part of the English Electric Group in 1955. All locomotive building from Preston was transferred to Vulcan Foundry and Robert Stephenson’s in Darlington. Under the new ownership, the works produced many locomotives for both domestic and foreign railways, notably the Deltic. The mid-sixties saw the ‘RK’/’V’ engine production at Preston moved to Vulcan and Ruston & Hornsby Ltd merged with English Electric Diesels in 1966. After the General Electric Company plc (GEC) takeover in 1968 the Ruston name was used for some time inside what became GEC Diesels Ltd in 1975. Engine production and development continued for locomotive, industrial and marine applications until after the GEC-Alsthom merger in 1989. The company took over Mirlees Engines, Stockport in 1997 and was renamed Alstom Engines Ltd.

In 1937 Robert Stephenson & Co. Ltd purchased the locomotive department of R & W Hawthorn Leslie & Co. Ltd. They became Robert Stephenson and Hawthorns Ltd. The policy was to concentrate the building of main line locomotives at Robert Stephenson’s Darlington works and industrial locomotives at Forth Banks. In 1944 Vulcan Foundry acquired Robert Stephenson and Hawthorns Ltd, ending Hawthorns' 137 year connection with Forth Banks. In 1955 Vulcan Foundry became full members of the English Electric group of companies, which became part of the GEC group of companies in 1968.

The Transport Act 1947 nationalised virtually all British transport, including the railways, waterways, and road haulage. These were transferred to a newly-created operating body, the British Transport Commission (BTC). The British Transport Commission began operations on 1st January 1948, under Chairman Sir (later Lord) Cyril Hurcomb. At this time, the British Transport Commission acquired the “Big Four” grouped railways, with virtually all minor railways as well, together with the London Passenger Transport Board. This automatically transferred the assets of the rail companies to BTC, including ships, ports, hotels, and investments in bus, coach, and haulage companies. Two bus companies, Tilling and Scottish Motor Traction, were soon added, as well as long-distance road hauliers. The Transport Act charged the British Transport Commission with the task of charged with “integrating” various forms of transport into single public service. The British Transport Commission did not directly operate transport services. Operations were delegated to five separately appointed executives: Docks and Inland Waterways, Hotels, London Transport, Road Transport, and Railways. The Railways Executive operated under the name British Railways. In 1949, the Road Transport Executive was divided into two separate executives: Road Haulage and Road Passenger. The Commission exercised financial control over these Executives, and managed them through schemes of delegation. The Commission attempted to fulfil its statutory duty to “integrate” public transport by introducing Area Schemes. These were designed to establish regional monopolies for road passenger transport, ports, and harbours. “Integration” was also to be promoted through Charges Schemes, in which the true costs of different modes of transport were to be reflected in the charges. This was designed to attract traffic to the most economic and efficient mode of transport. The structure of Executives was dramatically altered by the Transport Act 1953, which abolished all Executives, with the exception of London Transport. Responsibility for the operation and maintenance of transport systems was delegated to the chief regional managers. The railways were reorganised into a system of area boards for each of its six regions. In September 1953, Sir Brian Robertson became Chairman. Disposal of the haulage fleet also began at this time, but a lack of buyers made this difficult. Rising costs, industrial action and competition from road traffic meant that the British Transport Commission was in financial trouble by 1955. It sought relief from this by publishing The Modernisation and Re-equipment of British Railways, a plan which proposed an investment in the railways of £1,240m over fifteen years. The main features of this plan were the replacement of steam with electric and diesel traction, the electrification of principle routes, and the introduction of new coaching stock. Despite the modernisation plan, the financial position of the British Transport Commission worsened. Two government reviews, in 1956 and 1959, concluded that the Commission was unwieldy and had an insufficiently commercial outlook. Sir Brian Robertson retired in May 1961, and was replaced by Dr Richard Beeching. The BTC was abolished by the Transport Act 1962. It was replaced with five new authorities that were answerable to the Minister of Transport: the British Railways Board, the British Transport Docks Board, the British Waterways Board, the London Transport Board, and the Transport Holding Company. Dr Beeching became chair of the British Railways Board.