Mothballing

Mothballing is the temporary preservation of an asset by reducing its use and ongoing maintenance while keeping it ready for possible future reactivation. It is applied to capital equipment, industrial facilities, and, in defense contexts, fleets of ships or aircraft. The aim is to lower current operating costs during periods of reduced demand or to retain options for restoration rather than selling or scrapping the asset.

The decision to mothball typically follows an assessment of risk, cost, and strategic value. Methods commonly involve stabilizing and protecting the asset: cleaning, sealing, securing utilities, applying corrosion inhibitors and moisture controls, lubricating critical components, and protecting or removing sensitive electronics. For facilities, climate control and pest management may be added. A formal maintenance plan establishes periodic inspections and functional checks to detect deterioration and plan reactivation.

Operational and financial considerations include cost reduction from reduced activity and maintenance, balanced against potential reactivation costs and time required to return the asset to service. Effective mothballing requires documentation, governance, compliance with safety and environmental standards, and often a schedule for reviews or transfers to other uses.

Risks and limitations include corrosion, material fatigue, seal degradation, and obsolescence, as well as space and capital tied up in idle assets. Reactivation may require significant restoration, testing, and procurement. Alternatively, mothballed assets can be sold, repurposed, or scrapped if reactivation proves impractical.

Examples are common in military navies maintaining mothball fleets and in industry during downturns or project pauses. The term originates from the practice of placing mothballs in storage to protect clothing and goods from moth damage.