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Backward Integration

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Backward Integration
A form of vertical integration that involves the purchase of suppliers in order to reduce dependency.

Notes:
A good example would be if a bakery business bought a wheat farm in order to reduce the risk associated with the dependency on flour.


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Whether that funding comes through depends on whether we see any more expansion on value-added or backward integration like burners or resin (plant).
Some small tissue machines will be replaced by midsize machines and backward integration of converters into jumbo rolls will take place on a smaller scale in 2006.
He continues, "There is backward integration in that sense in alternative units with the mills.
 
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