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 acquires 75 percent of Fluidtime
    January 12, 2017
    Kapsch TrafficCom has taken a 75 per cent stake in Fluidtime Data Services which will enable Kapsch to strengthen its position to act as a platform- and service provider for Mobility-as-a-Service (MaaS) schemes for cities, corporations and transport agencies. Since 2004, Fluidtime has developed and operated software solutions and user-friendly mobile services enabling intermodal urban travelling. Its mobility platform provides urban travelers with real-time information on transport options and multimodal
    Read More
  • Less travel aggravation to blunt Aggieland fans’ motivation
    June 17, 2016
    Returning travel times to normal within two hours of the end of a major football game was the challenge facing College Station, Adam Lyons explains how this was achieved. College Station, TX, also known as ‘Aggieland’, is located right in the middle of the Dallas/Fort Worth, San Antonio and Houston triangle making the city accessible to over 14 million Texans within less than a four-hour drive. One of the biggest draws to this area is Texas A&M University (TAMU) and the Aggie football games in the fall, mea
    Read More
  • Sice systems future proof Fehmarnbelt Tunnel
    April 4, 2023
    Picking up the electro-mechanical contract for the Fehmarnbelt Tunnel was a milestone, according to David Calero Monteagudo, head of global ITS and tunnel business for Spanish company Sice. David Arminas finds out more
    Read More
  • Saving the smartphone zombies from themselves
    October 15, 2020
    As roads – particularly in cities – become busier, companies are fielding a steady trickle of products to keep pedestrians safe and vehicles flowing
    Read More

Highlighted Content