What is toll manufacturing?

Question

I would like to have a good description on what is toll manufacturing

Thanks,
Commercial B

Answer 1

Toll processing, also known as toll manufacturing, tolling, toll conversion or custom manufacturing, can be defined as performing a service on a customer's product, for a fee (toll). Toll processing companies provide a processing/manufacturing service for other companies and receive a volume-based fee.

Many companies in industries such as: chemical, minerals, metals, photographic, paper coatings, ink and paint, and cosmetics take advantage of toll processing for a variety of reasons. It can save them capital investment as the toll manufacturer buys the equipment. It uses none of their own floor space, as all the equipment is at the toll manufacturer's site. Quick turnaround and predictable costs are often sited as reasons to go this way too.

Answer 2

Toll Manufacturing

Answer 3

Tolling Definition

Answer 4

Toll manufacturing service means processing of material or semifinished goods on toll basis where principal provide material for further process upto its requirement and the toll manufacturer receives the charges, or fee for converting such material/semi finished goods. It save cost of the principale to install plants, machinery and equipment used for completion of such process instead of he got such process by paying processing charges to the toll processor who have such facilities.