It was founded during April 1957 by executives from Mitsubishi Heavy Industries, Fuji Heavy Industries, Shinmeiwa Manufacturing, Sumitomo, Nihon Kogata Hikoki, Showa Aircraft, and Kawasaki Heavy Industries to design and manufacture a Japanese civilian turboprop airliner to replace the obsolete Douglas DC-3.
The organization was established in April 1957 by representatives from Mitsubishi Heavy Industries, Fuji Heavy Industries, Shinmeiwa Manufacturing, Sumitomo, Nihon Kogata Hikoki, Showa Aircraft, and Kawasaki Heavy Industries to create a Japanese civilian turboprop airliner as an alternative to the outdated Douglas DC-3.