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

  • TomTom traffic index shows increase in UK congestion
    April 1, 2015
    TomTom’s today 5th annual Traffic Index, the barometer of traffic congestion in over 200 cities worldwide, reveals rising congestion levels around the globe In addition, for the first time, the Index took an in-depth look at the true impact of rush hour traffic on the work week, uncovering that evening rush hour nearly doubles the journey time for car commuters. The analysis of 12 trillion pieces of traffic data worldwide revealed that the evening rush hour is the most congested time of day. Traffic co
    Read More
  • Xerox takes youthful view of future transport
    August 23, 2016
    Xerox’s David Cummins talks to Colin Sowman about the lessons for city authorities from its survey of younger peoples’ attitude to transport. There can be no better way to get a handle on the future of transport demand than to ask the younger generation about how they view and consume today’s transport. Sociologists have called this group Generation Z – those born between 1995 and 2007 – which will make up 40% of all US consumers by 2020.
    Read More
  • A new way to manage parking demand
    July 21, 2021
    Parking permit changes at one US campus could provide a model for encouraging active travel options post-Covid – and for transit ticketing adjustments as commuting patterns change
    Read More
  • FIA ‘cautious’ about Germany’s road toll scheme
    December 5, 2016
    FIA Region 1 has responded to the news that German Transport Minister Alexander Dobrindt and European Transport Commissioner Violeta Bulc have reached a deal for a non-discriminatory roll out of a controversial road toll scheme in Germany. Although final details of the deal have yet to be released, FIA Region I cautiously welcomes the deal if it means the replacement of some existing road taxes. The German Minister has committed to earmark revenue from the new road taxation scheme to be re-invested into the
    Read More

Highlighted Content