Clean Diesel Technologies Inc ( NASDAQ: CDTI ) entered in to the agreement with Tanaka Kikinzoku Kogyo Kabushiki Kaisha ("TKK"), Clean Diesel's joint venture partner in Asia Pacific, to provide catalyst engineering and support services to advance the deployment of Mixed Phase Catalyst (MPC®) emission control technology in China. Although stock jumped more than 17 %,Volumes are not quiet convincing and therefore up move doesn't look convincing. Buy positions might be avoided.

(PRNewswire) -- Clean Diesel Technologies, Inc. (NASDAQ: CDTI) ("Clean Diesel"), a cleantech emissions reduction company, announced today an agreement with Tanaka Kikinzoku Kogyo Kabushiki Kaisha ("TKK"), Clean Diesel's joint venture partner in Asia Pacific, to provide catalyst engineering and support services to advance the deployment of Mixed Phase Catalyst (MPC®) emission control technology in China. TKK is establishing a venture in partnership with CDGM Glass Co., Ltd. ("CDGM") that will manufacture and sell catalysts to the Chinese automobile sector. The agreement will combine Clean Diesel's expertise in emission control catalyst technology with TKK's industrial products manufacturing abilities and the capabilities of CDGM in the Chinese automobile industry. Clean Diesel will receive $1.45 million in exchange for contributing its engineering expertise and support to assist TKK in the establishment of a catalyst manufacturing capability in China. The agreement consists of an up-front payment with the balance to be paid upon completion of certain milestones expected to last approximately 14 months.

Charles Call, Chief Executive Officer of Clean Diesel Technologies, Inc., said, "The agreement is an important strengthening of the strategic relationship between Clean Diesel and TKK and enables an important commercialization of our MPC® emissions control catalyst technology in this rapidly developing market. We believe this collaboration between the companies will create a catalyst technology business in China with significant local presence, focus, resources and expertise."