Work has begun on building a technology park on 16 hectares (40 acres) of land previously owned by the collapsed car company MG Rover, it emerged yesterday.

It is thought that 2,500 jobs will be created at the site in Longbridge, Birmingham, part of which was sold to the regional development agency Advantage West Midlands (AWM) two years ago.

Plans for a Longbridge Technology Park, straddling the carmaker's former north and south works, include research and development as well as production facilities. Community resources, such as a pub and a nursery, have also been proposed.

AWM's chief executive, John Edwards, described the park as a "vital landmark", which had been part of a plan developed over several years to diversify the region's business base. He said: "This development really signifies the future for manufacturing and business, high value-added products and processes that are capable of innovating and dealing with a global marketplace."

Anthony Glossop, the chairman of St Modwen Properties, the company developing the site, said it was fortunate his firm had been able to bring the plan forward so soon after MG Rover went into administration. "Whilst it cannot solve the short-term issues arising from this event, it will provide a longer term sustainable regeneration," he said.