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Mothballing

Mothballing Definition

Mothballing is a colloquial term for postponing something for a not defined period in order to be utilized in the future. For example it describes a practice in which a company keeps a production facility in working order but does not use it to produce. Equipment in a mothballed factory is kept in good order so that production can be restored quickly upon demand. This strategy is useful for a company that has high operating costs, because it could be more expensive to use the facility.








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