UPS to build $260 million facility in Indiana

Global parcel delivery giant UPS Inc. will build a $260 million package-processing facility in Indiana in a move to manage fast growth in parcel volume from the e-commerce, healthcare, and manufacturing sectors, the company said today.

The 893,000-square-foot facility in Plainfield, Ind., adjacent to Indianapolis International Airport, will add capacity and flexibility for routing packages through its network when it is completed in late 2019, UPS said.

Together with improvements to nearby package-handling hubs at 81st Street and 16th Street in Indianapolis, and in Castleton, about 15 miles northeast of the city, the company will add more than 575 new full-time equivalent positions over the next five years.

"Central Indiana is a logistics gateway for efficient transportation networks that enhance UPS reliability and service," Kevin Church, president of UPS's Ohio Valley District, said in a release. "Support from local and state leaders lets us be nimble to apply new technologies and equipment, together with our people, for flexibility to manage growth from e-commerce, healthcare, and manufacturing."

In addition to supporting UPS' operations in the Ohio Valley District—which includes Indiana, Kentucky, and Southern Ohio—the new facility will also augment UPS' ability to roll out its new Saturday ground delivery and pickup service in the region. That offering began in the broad community in late April and is one element fueling retail fulfillment and residential delivery growth in the area, UPS said.

The Plainfield facility will feature advanced package scanning and sortation equipment that will improve flexibility, UPS said. When it comes on line, the hub will allow UPS to make dynamic changes, as parcels are routed through the complex paths of conveyors and belts in the building or directed in transit to other area facilities. In turn, customers will benefit from improved speed and processing accuracy that can scale up to match daily fluctuations, manage a surge from the latest retail promotion, or handle changes due to weather contingencies, UPS said.