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

  • Commuting habits come under scrutiny
    March 28, 2017
    Cities have a moral responsibility to encourage the smart use of transportation and Andrew Bardin Williams hears a few suggestions. Given the choice of getting a root canal, doing household chores, filing taxes, eating anchovies or commuting to work, nearly two-thirds of Americans said that they wouldn’t mind commuting into work—at least according to a poll conducted by Xerox (now Conduent) over its social media channels at the end of 2016.
    Read More
  • Convictions up but many still drug-driving
    March 1, 2016
    As the Department for Transport confirms a six-fold increase in the number of people caught drug-driving, a survey by road safety charity Brake and Direct Line Insurance reveals huge numbers of drivers and passengers are still taking dangerous risks when it comes to drugs. The survey indicates that one in 14 drivers, or seven per cent admit they drive at least once a month after having taken drugs.
    Read More
  • Oregon trials road user charging
    February 11, 2013
    In Oregon, gas-tax money funds about 58 per cent of the budget used to take care of the state’s roads. As vehicles become more fuel efficient, the gas tax, which is 30 cents a gallon in Oregon and 37 cents in Washington, will generate less and less money. “If we’re using gasoline and diesel sales to fund our transportation system, we’re going to be in big trouble,” said Patrick Cooney of the Oregon Department of Transportation (ODOT). Recognizing the problem early, Oregon started studying alternatives to th
    Read More
  • Mobile payment technologies for Australia
    October 11, 2016
    Contactless technology, the ability to tap your bank issued card or enabled mobile device to make a payment, has brought speed and simplicity to the in-store shopping experience. Doug Howe explains how innovations, like Contactless, in the mobile and banking industries have the potential to transform public transportation. Q Why is public transportation ripe for transformation? A Today, more than half the world’s population lives in cities; that’s a figure set to increase to 70% by 2050. International
    Read More

Highlighted Content