The Westland Lysander MkI was a British Army co-operation and liaison aircraft but was also manufactured in Canada from the mid 1930s by the National Steel Car Company. The NSC based in Hamilton, Ontario, was a major railway rolling stock manufacturer but decided to expand into aircraft production as well. Their new aircraft division kept the original company NSC name, working out of Malton Airport just a little further north from Hamilton. Their initial contract was to construct under licence a number of Westland Lysanders, of which No. 416 was the first to come off the production line in August 1939, coinciding with Germany's invasion of Poland and the declaration of war in Europe.

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