Today we visited a different port and learned about the two companies that operate there. One of these companies, Vassiliko Cement Works is a great example of how a company can be vertically integrated. This company is not horizontally integrated because they have not bought other competitors or expanded to more plants in other countries since their establishment in 1963. They operate solely from the port in Vassiliko, Cyprus, and own every part of their supply chain, making them vertically integrated. Their process is as follows: extracting raw materials from the locally owned quarries, crushing these materials like limestone and clay, preblending these together, grinding this mixture into a powder, preheating it with a new vertical tube structure, producing and storing the clinker intermediate additive, grinding the cement together, and storing the cement. The final cement product is not pre ordered but bought directly on site by customers in most cases, either through the port internationally or by truck locally on the island. This is a good example from vertical integration because one company at one location takes their products from the raw materials directly to consumers.
