The team was founded in 1976 by Matsuhisa Kojima. Kojima had made a fortune importing bananas, and was a motor-racing enthusiast, having ridden in Motocross himself in the 1960s. He began entering Formula Two cars in Japan, and struck a deal with Dunlop to supply tyres for the 1976 Japanese Grand Prix. To go with these, the company constructed the KE007 chassis, and brought in several staff-members from the Maki team. They helped arrange an entry for the Grand Prix at Fuji, and a Cosworth DFV engine.