CDTi Streamlines Operations With Closure of Canadian Manufacturing Facility
December 11 2015 - 9:25AM
– Repositions operating footprint around advanced
materials strategy –
– Expects to save approximately $3 million in
annual costs –
– Reduces overhead to drive profitable growth and
increase shareholder value –
Clean Diesel Technologies, Inc. (Nasdaq:CDTI) ("CDTi" or "the
Company") announced it is closing its manufacturing facility
located in Markham, Ontario to align its operating footprint in
support of its advanced materials strategy. Combined with other
concurrent actions to reduce overhead, the closing of the Markham
facility is expected to eliminate approximately $3 million from the
company's annual cost base. The shutdown is expected to be
completed during the first quarter of 2016.
Matthew Beale, CDTi's CEO, said: "As we stated on our third
quarter 2015 conference call, we have been focused on initiatives
to align our operating structure with our powder-to-coat business
model. These initiatives included exiting non-core businesses and
externalizing operating activities not integral to delivering value
to our customers. By closing our Markham facility, we are doing
just that. Our streamlined cost structure and operating footprint
better support CDTi's positioning as an advanced materials provider
for the global emissions control market. In addition, this
initiative enables us to more quickly and cost effectively ramp the
DuraFitTM business by simplifying our supply chain and putting
manufacturing in a US location closer to our customer base, which
we expect will benefit our customers by improving lead times,
capacity and manufacturing flexibility."
Following the facility closure, CDTi intends to consolidate
certain commercial and supply chain activities to its Oxnard, CA
facility and work with vendor partners to cost-effectively
outsource other activities. The Company anticipates recording
approximately $1.8 million in expenses during the fourth quarter of
2015 to complete these actions.
For additional information on these cost reduction initiatives,
CDTi refers you to the Form 8-K filed today with the Securities and
Exchange Commission, available at the company's website at
www.cdti.com or at www.sec.gov.
About CDTi
CDTi manufactures and distributes vehicle emissions control
products that leverage its advanced materials technology. CDTi's
proprietary technologies provide high-value sustainable solutions
to reduce hazardous emissions, increase energy efficiency and lower
the carbon intensity of on- and off-road combustion engine systems.
With a continuing focus on innovation-driven commercialization and
global expansion, CDTi's breakthrough Powder-to-Coat (P2C™)
technology exploits its high-performance, advanced low-platinum
group metal (PGM) emission reduction catalysts. Key technology
platforms include Mixed Phase Catalyst (MPC®), Base Metal Activated
Rhodium Support (BMARS™), Synergized PGM (SPGM™), Zero PGM (ZPGM™)
and Spinel™. Headquartered in Oxnard, California, CDTi has
operations in Canada, Japan, the United Kingdom and Sweden. For
more information, please visit www.cdti.com.
Forward-Looking Statements
Certain information contained in this press release constitutes
forward-looking statements, including any statements contained
herein that are not statements of historical fact. You can identify
these forward-looking statements by the use of the words
"believes", "expects", "anticipates", "plans", "may", "will",
"would", "intends", "estimates", "promises", and other similar
expressions, whether in the negative or affirmative.
Forward-looking statements are based on a series of expectations,
assumptions, estimates and projections which involve substantial
uncertainty and risk. In this press release, the Company includes
forward looking statements regarding CDTi's ability to achieve
certain cost savings and strategic initiatives. In general, actual
results may differ materially from those indicated by such
forward-looking statements as a result of risks and uncertainties,
including, but not limited, to (i) any inability by CDTi to (1)
realize the benefits of investments and planned cost saving
measures; (2) successfully transition into an advanced materials
supplier; (3) execute its strategic priorities; (4) commercialize
its technology due to agreements with third parties; (5) protect
its intellectual property; (6) obtain verifications, approvals or
market acceptance of its products or technology; or (7) achieve
anticipated results; (ii) changes in or lack of enforcement of or
funding for emissions programs, regulations or standards; (iii)
competitive conditions; (iv) prices of PGM and rare earth metals;
(v) intellectual property infringement allegations; (vi) inability
to meet emissions control standards; and (vii) other risks and
uncertainties discussed or referenced in the Company's filings with
the Securities and Exchange Commission, including its most recent
Annual Report on Form 10-K. In addition, any forward-looking
statements represent the Company's estimates only as of the date of
such statements and should not be relied upon as representing the
Company's estimates as of any subsequent date. The Company
specifically disclaims any obligation to update forward-looking
statements. All forward-looking statements in this press release
are qualified in their entirety by this cautionary statement.
Contact Information:
Becky Herrick or Cathy Mattison LHA (IR Agency) +1 415 433 3777
bherrick@lhai.com cmattison@lhai.com
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