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What is an overcapacity?

What is an overcapacity? Here are some definitions.

Noun
  1. A capacity for the production of a commodity or product that is in excess of what is needed
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Examples
Maybe some industry somewhere isn't loaded with global overcapacity, but I'm still looking for it.
Now, if they're in an industry suffering from overcapacity and bloated asset prices, they should worry if vultures aren't in sight.
The auto industry faces a global crisis of overcapacity and every major automaker is involved in mergers, corporate restructuring and downsizing.
In this steep economic downturn, markets are flushing out overcapacity, winnowing the weak from the strong.
Concerned about overcapacity in the auto industry, policy makers in Beijing have been engaged in a lengthy effort to curb auto loans.
The worldwide overcapacity in steel is larger than the U.S. steel industry.

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