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

Related Content

  • November 7, 2012
    Europe's electronic toll service closer to operational reality
    After much debate and delay, a unifying European Electronic Toll Service is now finally on the horizon, says ASFiNAG’s Klaus Schierhackl. Here, he talks with Jason Barnes about what that might mean. Aworkable European Electronic Toll Service (EETS) which will allow truck drivers to travel across the continent and pay tolls using a single account and OnBoard Unit (OBU) was originally timetabled to be in place and operating by October of this year. A lack of urgency from some of the stakeholders involved in t
    Read More
  • March 22, 2012
    China Yuchai announces new gas engine development project
    China Yuchai International has announced that its main operating subsidiary, Guangxi Yuchai Machinery Company Limited (GYMCL) has inaugurated a new project to develop and produce a full portfolio of natural gas powered engines to complement its existing suite of diesel engines. In recent years, the policies of the Chinese government have encouraged energy conservation and emissions reduction.
    Read More
  • April 25, 2013
    Integrating traffic management and tolling technologies
    Jamie Surkont, head of road safety enforcement with Kapsch, outlines the company’s efforts to set up and align new traffic management business units with its more widely recognised tolling expertise The blurring of ITS applications’ edges brought about by systems’ increasing functionalities will ensure that many of the technologies which we have come to rely on for road and traffic management will find it increasingly difficult to exist or operate within tight market verticals. At the same time, systems man
    Read More
  • May 26, 2015
    China's RFID market value forecast to reach US$4.3 billion by 2025
    According to a new report by IDTechEx, RFID in China 2015-2025, not only will the use of RFID in China become a US$4.3 billion market in 2025, but that figure will almost double if the value of tags and readers made in the country and exported elsewhere is included. Already in 2015 China had 85 per cent of the global manufacture capacity of RFID tags, with over 150 RFID companies operating in the country.
    Read More

Highlighted Content