Tolling agreement

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.
References in periodicals archive ?
Contract Awarded for Leasing and tolling agreement for which it will produce refined bleached deodorized palm oil at its Lahad Datu Plant in Sabah, Malaysia.
Company continued to decrease production volumes under tolling agreement as local consumption of zinc surged.
TAQA also has an interest in a tolling agreement for the Red Oak power plant in Sayreville, New Jersey.
19, 2012 /PRNewswire/ -- MedCath Corporation announced today that it has extended its Tolling Agreement with the U.
To provide customers with a smooth transition," the companies say, "Arkema will continue to produce the products for several months through a tolling agreement with Bayer MaterialScience.
The tolling agreement between the company and UKDS remains in place, ensuring around 50 of the company's original workforce continues to be employed for the time being.
The IRS concluded that the tolling agreement was not a commodity and that mark-to-market treatment of the agreement did not clearly reflect income.
The power plant is scheduled to begin commercial operation in this June, with a long-term tolling agreement (15-year term, with option to extend for five years) concluded with the RWE Group, one of the largest utility companies in Germany.
The transaction includes a long-term tolling agreement under which Kronochem will utilize its manufacturing capacity and production expertise to produce wood adhesives for Casco Adhesives.
This will result in the transfer of control of BE Red Oak Holding, which holds a tolling agreement for the Red Oak power plant (Red Oak) in Sayreville, New Jersey.
The tolling agreement only applies to the entity that made the agreement - the Rose law firm.
EQM and Delek Renewables are parties to a tolling agreement pursuant to which EQM produces biodiesel for Delek Renewables using the feedstock of Delek Renewables.