Stamford, Conn.-based Clean Diesel Technologies (Nasdaq: CDTI) announced today that it has licensed its Wire Mesh Filter technology to Zhucheng, China's Headway Machinery, a commercial diesel engine exhaust company.

Financial terms of the deal were not disclosed, but Clean Diesel said it would receive an upfront licensing fee and royalties on all Wire Mesh Filter units sold in China.

"This deal provides Clean Diesel comprehensive access to the world's second largest automotive market," said Bernhard Steiner, president and CEO of Clean Diesel.

"This agreement reinforces the value of our technologies as cost effective, robust emission control solutions for use worldwide."

Under the agreement, Clean Diesel said Headway would develop the Wire Mesh Filter technology in order to provide particulate matter emission reduction solutions to China-based truck manufacturers.

Headway CEO Pei-hai Gao said, "Headway is the largest commercial diesel engine exhaust supplier in China. Combining our market reach with technologies from Clean Diesel, a world leader in the development of emissions reduction technologies, will help provide a cleaner future for China."

Clean Diesel said the technology would allow Headway to bring Chinese trucks in line with the Euro IV particulate matter emission standards for light and medium duty trucks.

China adopted the Euro IV emissions standards at the beginning of this year, according to Clean Diesel.