Developer St Modwen in partnership with Advantage West Midlands officially began the development of the 40-acre Longbridge Technology Park yesterday.

The #15 million project is the first stage in the long-term strategy to regenerate 342 acres of the former car factory.

Compaction work has begun on the site of the north carpark before construction begins on two new buildings, which will house businesses employing up to 650 people.

There are plans for a third building , while demolition of the West Works will begin next month.

The old conveyor across the Bristol Road will be brought down in August and flattening of the north works is due to be completed before the end of the year.

Earlier this year Rover's Chinese owner Nanjing Automobile agreed a 33-year lease on 105 acres of the 469-acre site and has pledged to return some form of manufacturing.

The start on the technology park venture, which will be at the heart of the central technology belt stretching from Birmingham out to Malvern, was witnessed by Anthony Glossop, chairman of St Modwen, and John Edwards, chief executive of AWM.

Mr Glossop said: "This is an exciting scheme giving Longbridge the opportunity to contribute to Birmingham's need to provide space for tomorrow's businesses.

"It also shows St Modwen's commitment to the future of Longbridge and our aim to create up to 10,000 new jobs and a new heart for the area following the demise of MG Rover.

"We have a track record of developing and operating specialist buildings for new and growing high technology businesses in other parts of the country such as Cranfield University in Bedfordshire."

The project comprises two landmark buildings which are scheduled for completion next April.

The Innovation Centre, a 45 , 000 sq ft building prominently sited on the corner of the A38 and Longbridge Lane, will provide serviced accommodation from 250 sq ft for start-up technology-based businesses.

The second building of 35,000 sq ft, fronting the A38, is designed to provide grow-on space for companies wanting to expand and requiring accommodation of 4,000 sq ft or more.

Mr Edwards said: "Longbridge forms a key part of our plans for the Central Technology Belt which encourages the development of high technology industries along the A38 between Aston Science Park and Malvern.

"High technology is the future for this part of the Longbridge site and, subject to planning permission, we look forward to continuing to work with St Modwen on this exciting scheme."

Development of the remainder of the site is being considered, with an area action plan being drawn up by St Modwen, Birmingham City Council and Bromsgrove Council in conjunction with St Modwen and AWM.

The public consultation process on the Area Action Plan is already underway and will continue throughout the summer.

Mr Glossop added: "This is the start of a programme that will ultimately create up to 10,000 jobs, people doing tomorrow's jobs rather than yesterday's.

"Earlier this year I stuck my neck out and said ten to 15 years from now people will say that the collapse of MG Rover was an opportunity rather than a disaster. Now we have to make that a reality."