Mothballing

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DEFINITION of 'Mothballing'

The preservation of a production facility without using it to produce. Machinery in a mothballed facility is kept in working order so that production may be restored quickly if needed.

INVESTOPEDIA EXPLAINS 'Mothballing'

A desirable production strategy for a company that has high operating costs, mothballing allows a factory produce goods upon demand instead of on a continual basis.

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