Kapsch to close Chinese factory and move work back to Vienna

Kapsch is to close its Chinese factory and produce its railway radio modules in its Vienna plant, which will be expanded. Although it will be five per cent more expensive to produce the products in Austria than China, wages are increasing in China and if the yuan is revalued the Chinese factory will no longer be able to compete with Austria. In addition, producing the parts in Vienna will mean that the company is able to react to client demands faster; a container takes up to six weeks to get from China to
March 23, 2012 Read time: 1 min
81 Kapsch is to close its Chinese factory and produce its railway radio modules in its Vienna plant, which will be expanded. Although it will be five per cent more expensive to produce the products in Austria than China, wages are increasing in China and if the yuan is revalued the Chinese factory will no longer be able to compete with Austria. In addition, producing the parts in Vienna will mean that the company is able to react to client demands faster; a container takes up to six weeks to get from China to Austria.

The return is part of a wider trend; almost half of German companies which had moved production abroad have already brought it back, according to the Fraunhofer Institut für System- und Innovationsforschung.
Urban Traffic Control

For more information on companies in this article

Related Content

  • Wireless bridges widen options for ITS upgrades
    December 9, 2014
    Antaira Technologies’ marketing engineer Brian Roth explains why the increasing capacity of wireless bridges is reducing the cost of expanding and upgrading ITS networks. With more than half of the world’s population now living in cities, the need for efficient transportation of both people and goods has never been greater and that pressure is unlikely to ease any time soon. Indeed in many regions of the world the rate of urbanisation is still increasing as the demand for rural workers continues to decline.
    Read More
  • Technology, shifts in behaviour can improve urban transportation, says Conduent
    May 24, 2017
    According to Conduent’s Customer Experience of Urban Travel report that details findings from a survey conducted in 23 cities in 15 countries, although improved infrastructure plays a critical role in reshaping mobility in today’s cities, the biggest factor in improving urban travel is changing human behaviour. Researchers found that transportation selection is based on habit rather than rational choice, noting that respondents around the globe chose driving their own car over other modes of transport for r
    Read More
  • Substantial savings from smarter street lighting
    February 25, 2015
    As authorities strive to reduce expenditure and carbon emissions, Colin Sowman looks at some of the smart ways of managing street lighting while containing costs and maintaining safety. Street lighting can account for 40% of an authority’s energy consumption. So, faced with the need to reduce outgoings, some authorities are looking for smart ways of managing street lighting or even turning off swathes of street lights in the small hours. Back in 2008 the E-street Initiative report concluded that authorities
    Read More
  • New model generation with PTV’s Model2Go
    August 8, 2022
    PTV Group has launched a product which automates much of the painstaking business of building transport models. Adam Hill talks to the company’s Udo Heidl and Ben Stabler to find out more
    Read More

Highlighted Content