By 1895 the firm needed more room. They purchased the assets of the LaFayette Car Works at South Lima and moved a portion of the locomotive production there. In early 1903 the firm moved entirely to the South Lima occupying the facilities of the Lafayette Car Works. With its entry into Class 1 railroad locomotive construction in 1911, the facilities changed in a rather dramatic fashion. Below is a map circa 1923 that shows how the little firm had grown to become a major player in steam locomotive construction.
Lima Locomotive attempted entry into the Gas-Mechanical locomotive business.¬ They were not nearly as aggressive as Baldwin, who literally owned the market as a result of building massive orders of G-M trench locomotives during WW I.