See animations pertaining to space elevator construction deployment
From SpaceElevatorWiki.com
SPACE ELEVATOR DEPLOYMENT/CONSTRUCTION FROM AN INITIAL GEO ORBIT
OVERVIEW
This is one of many schemes that have been put forth to accomplish deployment of the space elevator. It starts with a large satellite positioned at GEO. The satellite (likely having been constructed from components delivered to GEO via many conventional rocket launches) contains: 1. The ribbon, 2. The lower satellite that is the earth-seeking guidance and control module, and 3. The upper satellite that manages ribbon deployment, it's own guidance and control, and is destined to become the ballast mass for the space elevator.