Prior to World War II, during a period of rapid industrialization in the Soviet Union, the Soviet government sought international funding and expertise in developing a domestic industry for timepieces. Eventually the French watch manufacturer LIP was chosen; they established a new watch factory in Penza and licensed several movement designs to the new establishment. One design dating from 1908, the R-26 movement, was further developed and renamed the K-26, with significant alterations to the original design.