Raw material supply agreement

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Raw material supply agreement

As used in connection with project financing, an agreement to furnish a specified amount per period of a specified raw material.

Raw Material Supply Agreement

An agreement between a producer and a supplier in which the supplier provides the producer with a stated amount of raw material for the producer to make its product. The raw material comes on a regular basis (e.g. once a week), and, in exchange, the producer gives the supplier a fixed amount each time the raw material is delivered.
References in periodicals archive ?
The proceeds of such debt will be used to purchase existing and future receivables arising from two raw material supply agreements signed between OPP Quimica S.