Meaning
Capital expenditure for injection moulding cavities is distributed across the unit price of production parts over an agreed production volume. Sourcing agreements for amortised tooling allow buyers to defer upfront tooling investment by adding a fixed surcharge to each moulded component until the asset cost is fully recovered. This mechanism stops applying once the contracted part volume is reached or when the mould is fully paid off.
Datasheet quotes reflect this surcharge separately from raw polymer costs and processing machine rates.
Unit Recovery
Component pricing models add a dedicated tooling premium to the baseline material and processing costs. Under amortised tooling, the moulder absorbs the initial capital outlay for steel cutting and heat treatment, recovering those funds through recurring part deliveries. When production yields fall short of project projections, unit costs remain fixed while capital recovery lags.
Volume Risk
Part demand fluctuations alter the timeline for full tooling capital repayment. Procurement contracts utilizing amortised tooling must establish clear minimum order thresholds to protect the moulder against early project cancellation. If a program cancels early, a buyout clause settles the remaining balance.
Tool Ownership
Legal title to the moulding die remains with the processor until final payment settles the capital balance. Contractual clauses for amortised tooling define whether maintenance responsibility transfers alongside ownership after amortization completes. Regrind utilization policies and part quality tolerances remain governed by the master agreement throughout the amortization schedule.
