overcapacity

[oh-ver-kuh-pas-i-tee]

noun

plural

overcapacities 

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

overcapacity

/ ˌəʊvəkəˈpæsɪtɪ /

noun

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

Word History and Origins

Origin of overcapacity¹

First recorded in 1925–30; over- + capacity

Example Sentences

Another prominent issue officials will likely be seeking to address at the plenum is industrial overcapacity, causing domestic gluts of cheap goods in certain sectors and exacerbating friction with trading partners.

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"We look for a more coordinated policy push that addresses overcapacity and strengthens downstream demand," Sarah Tan, economist at Moody's Analytics, told AFP.

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The European Union’s top trade officials are proposing a 50% tariff on steel imports above a certain quota as the bloc moves to shield its struggling sector from overcapacity.

Read more on The Wall Street Journal

The European Commission—the bloc’s executive arm—said the EU steel industry faced significant pressure from overcapacity that it estimated at more than five times its annual steel consumption.

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Officials said growing overcapacity, rising steel imports and tariffs from other countries were compounding challenges for the EU steel sector.

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