After parting ways with Nakajima, Kawanishi established Kawanishi Engineering Works in 1920 and began designing aircraft with engineers he had recruited from Nakajima. By the end of the year, he had completed his first aircraft, the K1.
In 1928, the aircraft division became independent as Kawanishi Aircraft Co., Ltd. and began manufacturing flying boats with the cooperation of the British company Short Brothers. In 1936, it successfully flew the domestically produced Type 97 Large Flying Boat (H6K).
Japanese H6K aflame after being attacked by Allied aircraft, circa 1940s