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

  • January 25, 2012
    Turnkey projects deliver enforcement for developing countries
    Jenoptik Robot’s Ralf Schmitz talks about enforcement deployments in developing countries, and how those with long-established histories still have much to learn. In the enforcement sector, the concept of technology provider also being responsible for operations is hardly a new one. Nevertheless, it has gained significant traction over the last five or six years and has the potential to radically change the complexion of the industry according to Jenoptik Robot’s Director, Sales Ralf Schmitz.
    Read More
  • August 2, 2012
    Ford developing complete virtual factory
    Ford is developing a complete virtual factory to simulate the full assembly line production process. The company says this will enable it to improve quality and cut costs in real world manufacturing facilities by creating and analysing computer simulations of vehicle production procedures.
    Read More
  • January 25, 2012
    Tolling systems - interoperability is key
    Is US tolling as fragmented and divided as some would have you believe? And are the technology suppliers so very entrenched? ITS International spoke to the market's leading suppliers. A few years back, the prevalent view was that the North American tolling market was characterised by fragmented, proprietary solutions, each existing in splendid isolation. The reality is that a combination of pragmatism and good old market forces have seen some concerted moves made towards interoperability in many areas.
    Read More
  • April 16, 2012
    VISSIM benefits from German SKRIBT research project
    SKRIBT, a research project which is part of the ‘Research for Civil Security’ programme funded by Germany's Federal Ministry of Education, has focused on protecting critical bridges and tunnels. PTV, which was one of the research project's 10 consortium partners, says the knowledge and expertise gained from this project have been used for the company’s traffic simulation tool VISSIM. SKRIBT (Schutz kritischer Brücken und Tunnel im Zuge von Straßen) analysed threat scenarios, such as storm, flooding, expl
    Read More

Highlighted Content