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

  • Machine vision needs standards to fulfil ITS demands
    May 28, 2014
    No-one should expect the enabling qualities of machine vision to come free of charge but Jason Barnes finds there is still much that ITS stakeholders can do to help reduce costs. After many years of application in high-end solutions for the enforcement and tolling sectors, machine vision is gaining traction in more general areas of traffic management. Nevertheless, those OEMs producing transport-oriented solutions which incorporate machine vision and looking to increase the technology’s share of the ITS mar
    Read More
  • Standardise global ITS protocols to enable interoperability
    January 26, 2012
    ITS America has a new chief technology officer. ITS International caught up with Nu Rosenbohm at this year's World Congress to gather his thoughts on the main challenges at home and abroad
    Read More
  • Germany's approach to adaptive traffic control
    February 3, 2012
    Jürgen Mück, Siemens AG, describes the three-level approach taken in Germany to adaptive network control
    Read More
  • ‘Risky tailgating and speeding rife on UK motorways’
    May 22, 2014
    Six in ten UK drivers own up to risky tailgating (57 per cent) and a similar proportion break the limit by 10mph or more (60 per cent) on motorways and 70mph dual carriageways, with men by far the worst offenders, a survey by Brake and insurance company Direct Line reveals. Almost all drivers say they worry about other drivers tailgating on motorways: 95 per cent are at least occasionally concerned about vehicles too close behind them; more than four in ten (44 per cent) are concerned every, or most, tim
    Read More

Highlighted Content