Steve Leach

Construction at Volkswagen's auto assembly plant has hit a milestone even as the factory's first locally based tier one supplier makes plans to break ground on its new facility.

The VW plant's contractors have begun raising steel beams for all four of the planned major structures at the site -- the paint, assembly and body shops along with a training center, officials said Tuesday.

"Lots of things are happening out there. Lots of vertical stuff," said Steve Leach, the city's public works administrator.

Mr. Leach told the city's Industrial Development Board that the steel framing on the paint shop, on which work began first because it's the most complex, is essentially complete with the gray cladding being placed on the outside.

"It's an amazing building," Mr. Leach said. The $1 billion factory is slated to begin production in early 2011.

Mr. Leach said city staffers also recently met with representatives of Gestamp Corp., which unveiled plans to build a $90 million facility at Enterprise South industrial park.

"We've met with their project engineer and site managers to start working on that building," he said.

Mr. Leach said that Gestamp, a company headquartered in Spain but with American offices in Michigan, will set up an automotive parts stamping operation.

"They want to break ground in mid-August," he said. "We've got our work cut out for us in the next month."

Jeff Wilson, president of privately held Gestamp, said in June the company's $90 million plant is expected to employ about 230 people in three years.

Meanwhile, the Industrial Development Board approved a low bid of $4.9 million for Detroit-based Walbridge Aldinger to build a liquid tank farm at the site.

City Engineer Bill Payne said the underground storage units will hold gasoline, motor oil, and brake and other fluids used in vehicle assembly.

Mr. Payne said the state is paying the cost of the tank farm.