Vassiliko and Integrating Vertically

An important concept in the world of supply chains is vertical integration, and today we visited a company that does a good job of implementing some of these practices in their daily operations. The company in question is Vassiliko Cement Company, founded in 1963, which is the largest heavy industry corporation in the entirety of Cyprus. They focus on the production of both clinker and cement. They not only produce these materials for the local island market, which are the 2nd most consumed on Earth behind water, but they also export it to other foreign markets using the Vassiliko Port, which they have owned and operated since 1983. The Port is where vertical integration comes into play for the company. In the supply chain, vertical integration is when a company controls multiple areas of the chain and this is the case with the Port. Vassiliko owns the place in which they receive imports and send out exports. They control the intermediate where they can gain more raw materials and ship out more product. They also control some nearby quarries around the plant, where they mine for elements needed for concrete such as gypsum and limestone. All in all, Vassiliko owns a few different areas of their supply chain, that being the mining of certain raw materials, the production of the actual cement, and the Port which they use to ship their product to customers across the world.

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