Value Chain. Many, if not most, cement companies show a high degree of vertical integration and are consequently involved throughout the supply chain. The majority of cement companies own the quarries. Some producers also integrate downstream industries (i.e. concrete and aggregates). The extent of this downstream integration varies by country. Vertical integration can be a decisive factor, especially in mature markets. This allows companies to optimise their production process and to ensure high and consistent quality of their products. For producers of white cement, a secure the supply of high-quality limestone is important. Also, the high level of capital expenditure required for production means that it is important to ensure that plants have the enough supply of raw materials to remain operational for many years.
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Sources: Grant Agreement, Grant Agreement