FedEx Corp. will invest $1.5 billion to “significantly expand” its FedEx Express Indianapolis hub over the next seven years, the company announced on its website Friday.
The Indianapolis expansion was one of several investments FedEx announced Friday. The company said the actions were all related to recent federal tax reform, known as the U.S. Tax Cuts and Jobs Act.
“FedEx believes the Tax Cuts and Jobs Act will likely increase GDP and investment in the United States,” the company said in a prepared statement.
FedEx’s Indianapolis package-handling facility, which opened in 1988, occupies a 2.4 million-square-foot building at 6648 S. Perimeter Road, on property owned by the Indianapolis Airport Authority. It is FedEx’s second-largest operation behind its Memphis, Tennessee facility.
FedEx has announced two major expansions at the site in the last 18 months. In September 2016, the company said it planned to invest $170 million in equipment that would be installed at the Indianapolis facility between 2017 and 2020. In December, the company said it planned to invest $385 million in new equipment to be installed between 2018 and 2026.
It’s unclear whether the $1.5 billion announced Friday encompasses these previous amounts or whether it’s in addition to them.
A FedEx representative told IBJ on Friday afternoon that the firm had no additional comment on its plans.
FedEx’s Indianapolis hub is currently capable of sorting 214,000 packages and documents per hour, according to the company’s most recent annual report with the U.S. Securities and Exchange Commission.
Along with the Indianapolis expansion, FedEx also said it plans to spend more than $200 million on employee pay increases; make a $1.5 billion contribution to the company’s pension plan; and modernize and enlarge its Memphis SuperHub facility.
This is a developing story. Check back for more details.