Kato Precision Railroad Models was established in Japan in 1957 and is a manufacturer of HO and N scale model trains and accessories, as well as American prototype models. In 1986, Kato launched its U.S. division, and began distributing an N-scale versions of the General Motors EMD GP38-2 locomotive a year after. The US division became the exclusive United States distributor for Kato's N and HO locomotives and rolling stock, and the Unitrack straights, curves, and turnouts. Because Kato invented a propulsion system that allows N-Scale locomotives to operate quietly and smoothly, Kato has been credited for saving the N-Scale which was becoming a novelty, but is now at par with trains in larger scales.

Kato is a favored brand of hobbyists and model railroad aficionados, and Trainz carries a large selection of locomotives, cars, and the very popular Unitrack track system.

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