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

  • Kapsch TrafficCom strengthens presence in Mexico
    August 6, 2012
    Austria-headquartered Kapsch TrafficCom has announced that its subsidiary, Kapsch TrafficCom Canada (KTCC), has made a significant investment in Simex, Integracion de Sistemas, a Mexican systems integration company with 28 years of experience in the Mexican market in the fields of automation and control, toll collection, security and parking systems.
    Read More
  • New York pioneers online mobile real-time bus tracking
    May 22, 2012
    An unusual technology collaboration. David Crawford investigates Early in January 2012, the New York City Metropolitan Transportation Authority (MTA) rolled out the first borough-wide implementation of its pioneering Bus Time online mobile real-time tracking service. The system allow commuters to track each bus on every route in real-time on the internet, via smartphones and by text messaging to a mobile phone. The MTA chose Staten Island for its first live launch due to it being the only one of the five Ne
    Read More
  • London ‘needs next generation of infrastructure to compete’
    February 28, 2017
    Improving the capital’s infrastructure, through Crossrail 2, a new runway at Heathrow and East London river crossings, is key to the city’s future success and ability to compete, according to the latest CBI/CBRE London Business Survey. More than eight in ten of London’s companies see Crossrail 2 as being central to the capital’s successful expansion. Meanwhile, a similar number of firms think sticking to the Government’s current timetables for building Heathrow’s third runway is vital to London’s attractive
    Read More
  • Sampo Hietanen’s mobility mission
    June 17, 2016
    For a decade Sampo Hietanen harboured a vision of an alternative form of mobility, now as CEO of MaaS Finland he is putting theory into practice. Sampo Hietanen has become the embodiment of Mobility as a Service (MaaS) – a concept he created 10 years ago while working for Finnish civil engineering giant Destia. “I had been working with the mobile sector on traffic information and started thinking what will happen when this becomes bigger,” he says.
    Read More

Highlighted Content