(Adds background, CEO comment; updates shares)
March 11 Clean Diesel Technologies Inc,
a maker of emission control systems for vehicles, said it had
started production of catalysts for Honda Motor Co's
2015 Acura TLX model, sending its shares up as much as 160
percent in early trading.
Clean Diesel said shipments of the catalysts featuring its
mixed-phase technology are expected to begin in the first half
"The demand for greater emission reduction continues to grow
across all vehicle segments as evidenced by the recent U.S.
Environmental Protection Agency's announcement of Tier 3
standards," Clean Diesel's interim Chief Executive Nikhil Mehta
said in a statement.
Last week, the agency announced the new fuel and automobile
rules to reduce soot, smog and toxic emissions from cars and
U.S. automakers are already working to nearly double the
average fuel economy of new cars and light trucks to 54.5 miles
per gallon by 2025, under rules that took effect in 2012.
Clean Diesel's catalysts business, under which it offers
devices as well as formulations used in parts such as catalytic
converters and exhaust systems, accounted for about 43 percent
of its revenue in the nine months ended Sept. 30.
The company, which had a market value of $26.2 million as of
Monday's close, already provides catalysts for the North
American versions of Honda's four-and six-cylinder Accord, Acura
TSX and RLX, and its hybrid and plug-in hybrid models.
Clean Diesel's shares were up 128 percent at $6.44 in noon
trading on the Nasdaq.
(Reporting by Rohit T.K. in Bangalore; Editing by Ted Kerr and