Raw material supply agreement

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 ?
announced today that it has signed a long-term raw material supply agreement with Magle Life Sciences of Sweden, the supplier of the key powder component for Medafor's patented MPH(R) (Microporous Polysaccharide Hemosphere) surgical product, which is used by surgeons to control bleeding in complex surgical operations.
The company's second-quarter results will include nonrecurring charges for the write-off of a prepaid asset related to the termination of a raw material supply agreement and for in-process research and development related to the acquisition of the hydrocarbon resins and select portions of the rosins resins business from Hercules Incorporated.
NASDAQ Small Cap:RBBR) today announced that it has signed a raw material supply agreement with Waste Recovery Inc.