OS was founded in 1936 by machinist Shigeo Ogawa ("Ogawa Shigeo" in the Japanese surname-first tradition) for the production of model steam engines. The name of the firm could have either originated from the traditional Japanese family-name-first tradition being the source of the "OS" name, or from the firm's actual Japanese name, "Ogawa Seisakusho". At the suggestion of American buyer Paul Houghton, Ogawa tooled up for his first gasoline-powered engine, the 1.6 cc O.S. Type-1 of which 200 units were produced and exported under the brand name, "Pixie." After World War II, Ogawa Seiki expanded to produce the MAX line of engines, which won acclaim for their performance and durability.