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overcapacity

American  
[oh-ver-kuh-pas-i-tee] / ˌoʊ vər kəˈpæs ɪ ti /

noun

plural

overcapacities
  1. capacity beyond what is normal, allowed, or desirable.


overcapacity British  
/ ˌəʊvəkəˈpæsɪtɪ /

noun

  1. the situation in which an industry or business cannot sell as much as it produces

"Collins English Dictionary — Complete & Unabridged" 2012 Digital Edition © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012

Etymology

Origin of overcapacity

First recorded in 1925–30; over- + capacity

Example Sentences

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

Having a target range aligns better with officials’ efforts to control industrial overcapacity and advance structural reforms, Société Générale economists said.

From The Wall Street Journal

They are part of a cost-cutting drive by the world's biggest chemical company, which has been battered by high energy costs in Germany, weak demand and massive overcapacity on global markets.

From Barron's

The vast German chemical sector has been mired in crisis in recent years due to overcapacity, weak demand and high energy costs.

From Barron's

"During the same period, China entered a prolonged deflationary phase, stemming from over-investment in manufacturing, creating the overcapacity we see today."

From BBC

Germany’s carmakers, machine tool manufacturers and chemicals producers—critical industries that have sunk huge investments in China over the past three decades—are fighting brutal competition in a Chinese market where significant overcapacity is leading to deflation and eroding profits.

From The Wall Street Journal