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It's long been a question for British modellers: would we pay Fleischmann, Trix or Marklin prices for quality OO RTR? Er, no we wouldn't, so it was China or nothing for Hornby. Our market is very price sensitive, always has been, viz Meccano/Tri-ang in the 60s.

The part folks tend to ignore is that Hornby went East partly because of costs, but also because of capability. Sanda Kan can turn out better looking, better quality models than Margate even could - or ever would even with the vast investment that Hornby couldn't afford. That investment would have been wasted as H couldn't have matched the costs of the Chinese as they don't have their economies of scale. SK employs about 10000 people; Kader about 18000 (according to the recent BRM piece - which is a bit vague and contradicts some of the info on the Bachmann website, but never mind). H have pulled of a great rescue act, all credit to them.

Has anyone wondered why Dapol gave up on British OO? I think even their mechanisms come from the far east now.
 
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