Tuesday, October 18, 2011

Vittoria Tires exposed to floods in Thailand

Frame and Wheel reads with great interest about the flooding in Thailand. The flood waters are apparently on their way towards Bangkok after having flooded already much of the land in the northeast. The authorities are scrambling to clear the canals and put up barriers to divert the encroaching waters. Friends and family living in Bangkok report that all is well so far, but somehow Frame and Wheel cannot believe that this is true. The floods have already done $4.8b in damage and that is expected to increase if the flooding reaches Bangkok where forty percent of Thailand's economic output is concentrated. 
Frame and Wheel notes that Vittoria Tires is one of the many tire manufacturers that produce their tires in Thailand. This is because of lower costs and better access to rubber markets. Should the flooding swamp Bangkok, it could very well disrupt production. Additionally, Bangkok's infrastructure and ports could be affected to the point that it becomes difficult for the factories to ship goods out of the country. These bottlenecks could make some types of Vittoria tires harder to obtain or more costly.  Hopefully, this will not be the case, but better order your EVO Paves now while there is still some inventory kicking around.

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