Quote Originally Posted by Roger Cole View Post
What do you mean by over capacity versus over sized? Aren't these the same thing?

I assume you mean that by making fewer runs per year, a run every two years, whatever, they could keep this going profitably? Maybe - but then what do you have for those skilled people to do to justify their salaries the rest of the time? If they can be employed doing other things that take advantage of their skills that might be workable. But I assume that's what Kodak has been doing so far.

Maybe it's workable for a buyer. I agree with the thought that they must at least have a buyer in mind and some talks going on or they wouldn't have released this. This sort of release isn't the way to advertise "hey, this is for sale, anyone interested?"

Over sized was when Kodak had plants in several places making the same products for a WW market.

Over capacity is when a company makes (or can make) more product than the market can bear. This is a subset of Over Sized.

Kodak is now one plant. It is properly sized for the market, but within that plant, as the market shrinks, it is over capacity for some large part of the product range, for the market out there.

To compensate, Kodak now cannot become smaller, it can only reduce production within its current capacity. It does that by reducing operation hours or days of operation, among other things. It is very difficult to do as the market shrinks, because the capacity in terms of equipment is n ow frozen at a fixed level and there is no capital to redesign the equipment.

This is a very complex dilemma that is the opposite end of the scale from EFKE which drama is playing on in that other thread.