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In the early 1990s the Regional Railways sector of British Rail placed an order for new EMUs both to replace older electric units around Birmingham and Manchester, and to work services on the newly electrified Birmingham Cross-City Line. In June 1990, the contract was awarded to Hunslet Transportation Projects of Birmingham, a new company set up by a team of engineers and managers who had left Metro Cammell. Metro Cammell was at the time a Birmingham-based train builder. It won the contract in competition with six other European train builders. The trains were designed in Birmingham, but built and fitted out at the Hunslet works in Leeds.