Clean Diesel Technologies Inc. (CDTi) 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 complete during the first quarter of 2016.

Matthew Beale, CDTi’s CEO, said, “As we stated on our third quarter2015 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 DuraFit business by simplifying our supply chain and putting manufacturing in a U.S. 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, California, 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.