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

  • PTV Group boosts presence in China
    March 15, 2017
    German software provider PTV Group is expanding its international business in the transport and logistics sectors, with the appointment of a new managing director for its local branch office in Shanghai, China. With experience in all facets of transportation, Oscar Jiang Jing is charged with boosting the group's business in the Chinese market. In addition to the existing office in Shanghai, a further two regional offices will be established in Beijing and Chengdu within the next three years. The compa
    Read More
  • Flexible, cost efficient bus trailers adapt to passenger demand
    January 25, 2012
    The cost, environmental and other benefits of the bus trailer concept are obvious. Used in several areas of Germany, as well as Austria, Switzerland, and Luxembourg, vehicle sizes can be adapted to passenger demand. The Ruebenacker group, a public transport provider in the Black Forest region of Germany, is one of more than 20 bus operators in the country that have deployed bus trailers, also referred to as bus trains. The company owns 81 buses and transports nearly six million passengers a year in the Blac
    Read More
  • London needs just one road user charge, says report
    July 8, 2019
    London’s patchwork of road charging schemes should be replaced by a single, distance-based user charge, according to new research. Apart from anything else, it would be much fairer… The UK capital’s multiple road charging schemes require a radical overhaul, according to a new report by the Centre for London thinktank. The suggested solution is to replace existing levies on drivers with a single, distance-based user charge which would more fairly reflect how much, and at what time, people are using London
    Read More
  • Rethinking urban traffic congestion to put people first
    August 28, 2015
    Following the publication of the Texas A&M Transportation Institute/Inrix report on urban traffic congestion in the US, Robert Puentes, senior fellow with the Brookings Institution’s Metropolitan Policy Program , says that while the focus and themes of the report are largely the same as previous years, big changes are underway in how we study, think about, and address metropolitan traffic congestion. This new, modern approach calls into question whether the endless pursuit of congestion relief makes sense a
    Read More

Highlighted Content