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

  • Radar reinforces detection efficiency
    March 16, 2016
    Radar can have distinct advantages in some transport-related situations as Colin Sowman found out during a visit to Navtech Radar. Despite tremendous advances in machine vision techniques, the accuracy and reliability of camera-based detection systems suffer during periods of poor visibility where other technologies may offer an alternative. Radar is one such technology. It too has seen significant development in recent years and according to Navtech Radar, the technology can often fulfil detection and moni
    Read More
  • German consumers concerned about electric car practicalities
    May 5, 2016
    German consumers are concerned about the practicalities of owning an electric car, according to a survey by market research company GfK. For 54 per cent of those interested in buying an electric car, purchase premiums and tax benefits were not a reason to choose one. However, three out of four consumers looking to buy a new car considered the environmental aspects and low noise of an electric vehicle to be important. Lower maintenance costs compared to petrol or diesel vehicles were also key, while 72 per c
    Read More
  • US traffic fatalities fall in 2014, but early estimates show 2015 trending higher
    December 22, 2015
    The US saw a slight decline in traffic deaths during 2014, according to the Department of Transportation's National Highway Traffic Safety Administration (NHTSA). However, an increase in estimated fatalities during the first six months of this year reveals a need to reinvigorate the fight against deadly behaviour on America's roads, NHSA says.
    Read More
  • Better websites build smarter transport participation
    March 17, 2017
    Transport initiatives are gaining traction through well-designed websites. Four European smart transport-oriented websites have gained honours in the 2016 .eu Web Awards, an online competition inaugurated in 2014 to recognise the most impressive sites within the .eu internet domain in terms of their design and content. The four were among 15 finalists across all five categories of the scheme, giving the transport sector a high profile for its proactive use of sites as communications tools for driving major
    Read More

Highlighted Content