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Tolling Agreement |
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Tolling agreement An agreement to put a specified amount of raw material per period through a particular processing facility. For example, an agreement to process a specified amount of alumina into aluminum at a particular aluminum plant. Tolling Agreement An agreement between two companies in which one agrees to supply a certain amount of a raw material every so often. For example, an oil refinery and a drilling company may agree that the drilling company will sell the refinery a certain number of barrels of crude oil every month so that the refinery has something to refine. Tolling agreements are relevant to supply chains; because of the tolling agreement, the refinery in the above example may be more confident that it can sell refined oil to other companies along the supply chain. Tolling agreements can therefore be mutually advantageous. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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