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 smooths the way in Vienna
    March 31, 2022
    Kapsch is taking drivers’ desire for smoother, faster urban journeys into their latest plan to improve traffic flows in Vienna.
    Read More
  • Huawei opens door to new opportunities in transport & logistics
    December 18, 2024
    By addressing the four key elements of a transportation network’s composition with a state-of-the-art digital solution, Huawei is bringing significant performance uplifts to all aspects of railway operations
    Read More
  • Vision 2014 expands integration area, introduces discussion forum
    June 3, 2014
    Vision 2014 has expanded its integration area, providing a platform for system integrators and system providers to demonstrate their machine vision solutions and services. The integration area is almost completely booked, with 38 exhibitors confirmed, including German exhibitor Hella Aglaia Mobile Vision, which will also take part in the integration area for the first time. "Our core competence is the development of embedded machine vision software," said Christian Wulz, public relations manager, "and our
    Read More
  • Kapsch to expand Belarus toll road network
    August 18, 2015
    Kapsch TrafficCom has been awarded the contract to expand the BelToll toll road network in Belarus by an additional 323 kilometres, in line with the government’s long-term infrastructure development program. Kapsch is both developer and operator of the toll collection system under a twenty-year contract. Many recently upgraded and reconstructed roads throughout the whole country will be affected by the BelToll extension, as well as parts of the M5 and M6 highways. When the extension is completed, the tol
    Read More

Highlighted Content