Mitsubishi Heavy Industries Ltd. said Tuesday it will license production and sales of large gas turbines to South Korea's Doosan Heavy Industries & Construction Co. as part of efforts to set up a production network in Northeast Asia.

The two companies have signed an agreement under which Japan's largest heavy machinery manufacturer to license its most advanced model, the M501G, and some other turbines. They are to be sold in South Korea and parts of the Middle East, Mitsubishi Heavy said.

Doosan, the market leader in South Korea's heavy industry sector, plans to ship the first gas turbine manufactured under licensing in the second half of fiscal 2009.

The two also signed a long-term purchasing contract for MHI to buy gas and steam turbines from Doosan over the next several years for a total of about $320 million.