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

  • €7.2bn 'green' upgrade for Italian motorway
    November 21, 2022
    The A22 between Modena and Bolzano will offer hydrogen filling and EV charging
    Read More
  • Positive incentives an alternative to road user charging?
    February 1, 2012
    The Netherlands has been looking at incentivising rush-hour avoidance. The intention is to better understand road users' motivations and find alternatives to congestion charging. Something significant needs to happen if we are to adequately address the traffic congestion and other issues caused by the ever-rising numbers of vehicles on our roads. Congestion or distance-based charging is seen as one way of managing demand and raising revenue for improvements to transport infrastructure. However, charging is
    Read More
  • Technology holds the key to painless parking
    March 21, 2014
    Parking has been the most innovative of all the transportation sectors in the past five years. Richard Harris, Solution Director, Xerox Services outlines some of the key drivers and trends
    Read More
  • HERMES Study provides guidance for forward ITS thinking in Finland
    August 25, 2016
    Having authored HERMES, a major study for the Finnish Ministry of Transport and Communication, Josef Czako talks to ITS International about his findings and lessons for other authorities. When CEOs of major automakers are predicting more change in the next five years than in the past 50, what is the role of national authorities considering the benefits of innovations in ITS?
    Read More

Highlighted Content