The cornerstone is now in place on Volkswagen AG’s new Silao, Mexico, engine plant, slated to be up and running in 2013.

A ceremony was held yesterday to signal the official start of construction on the new facility, which will have capacity for 330,000 engines annually. The powerplants will support VW’s car-building operations in Peubla, Mexico, and Chattanooga. TN.

VW says it is spending $550 million on developing the new engines and building the new plant, which will employ 700 workers medium-term. The auto maker has not identified what engines will be produced at the new site.