Tolls

Texaco sold its polyol product line and a tolling agreement to Arco in 1987. Formerly Miles (formerly Mobay). 

Fig. 23. Cutaway view of (a) 2016-size Eveieady lithium manganese dioxide coin cell, and (b) jelly toll cylindrical lithium manganese dioxide cell (28).

This guideline describes methods to help the chemical processing industry apply the CCPS chemical process safety concepts to outsourced manufacturing operations, specifically the tolling vendor-client relationship. In addition to the focus on process safety, information and examples provided in this text foster good practices relative to community and worker health, and environmental responsibility. 

The techniques presented in this book will help improve the performance of tollers as well as companies seeking to use tolled services in the areas of ... 

All five elements combine to help ensure that the tolling operation is performed safely, efficiently, and in an environmentally sound manner. The ultimate reward to industry for embracing applicable good practices presented in this guideline is a vibrant business with minimized risk. The flowchart on page 3 shows the basic process for tolling as presented in this guideline. 

Both parties involved in a tolling operation are the intended audience for this book. Listed below are various terms used for companies that provide tolling services. 

For simplicity s sake, we have selected the following two terms, as referenced in the definition for tolling, for the two entities involved. They will be used throughout the book. They are ... 

Tolling means to provide manufacturing services for a fee by a contractor (the toller), to a company issuing (letting) a contract for those services. Tolled services can include ... 

Tolling implies that processing of materials takes place. Handling or storage of the product, such as warehousing, bulk storage... 

The combination of the contributions should result in complete process safety information for the toll. As you can see in this definition, there are many facets to both sides of the tolling contract that can be impacted by either party s philosophy of process safety. 

When would a company want to engage in tolling What could make a specific toller attractive to a client Here are some basic business... 

Equipment—client may not have the equipment required to manufacture a specific product. It may be that available capital and installation time are limited such that they simply can not design, acquire, install and test the process equipment to reach the desired capacity within the available budget and time. If a product is in the early stages of its life cycle, the capital required may be hard to justify. This could be based upon the low initial volume anticipated while developing the market or the need to take advantage of a time-sensitive business opportunity. Tolling can provide a means to safely produce introductoiy, short-term, or small volume products that would otherwise be uneconomic. 

Expertise—A client may seek to issue a toll contract if it chooses to produce a new product of unfamiliar chemistiy or formulation type. A toller may already have knowledge, equipment, and personnel uniquely suited for a given process that cannot be readily duplicated. A toller with expertise in that particular type of chemistiy or formulation could speed production and assist them in building a higher level of in-house expertise through close interaction. This may enhance the level of process safety and personnel safety should the client ever bring the process in-house. 

Logistics—If a company is geographically located such that it can not meet the desired service level and deliveiy requirements of its customers, tolling may provide a local production and distribution site. Shorter transportation routes for hazardous chemicals or wastes may also be a consideration. 

Environmental—If a product or its raw materials require special permitting (for example, air permits) or if the client company s facility is inappropriate for the process, tolling could provide a means to achieve the company s production goal. 

There are two primary advantages of tolling that can be summarized from the previous section addressing the reasons to toll ... 

The disadvantages of tolling are less clear cut. A contract is intended to limit liabilities for at least one and hopefully both parties. Tolling liability can be limited by identifying potential problems and avoiding them using techniques presented in this... 

Some potential problems involved in tolling are listed in Table 1 -1. 

Tolling operations should be held to the same principles of public openness and communication espoused by forward thinking companies in the chemical industry. In 1988, the Chemical Manufacturers Association (CMA) initiated the Responsible Care initiative to assist in making this possible. Its goal is to lead the chemical industry in ethical practices that increasingly benefit society, the economy and the environment. 

Table 1 -1. Potential Problems Encountered in the Tolling Relationship...

Must rely on certain information provided by the client Environmental issues due to unknown hazards from other ongoing tolls or a toller s past practices... 

For new tolls, dealing with an unknown company For new tolls, dealing with an unknown toller... 

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