UPS to Expand Sorting Capacity At Rockford

May 9, 2006
While the project will not expand the hub building at the Chicago/Rockford International Airport, the interior will be outfitted with additional sorting equipment to increase its sorting capability from 82,000 packages per hour to 121,000 packages per hour.

ROCKFORD, Ill.--(BUSINESS WIRE)--May 8, 2006--UPS (NYSE:UPS) today announced an expansion project at its air package hub in Rockford, Ill., that will increase sorting capacity by almost 50%.

The project was approved after close consultation with the state of Illinois and the city of Rockford. While the project will not expand the hub building at the Chicago / Rockford International Airport, the interior will be outfitted with additional sorting equipment to increase its sorting capability from 82,000 packages per hour to 121,000 packages per hour, in turn creating a need for additional workers.

After receiving pledges of support from the state and city, UPS now has scheduled the $25 million project to begin later this month. The state has offered job creation tax credits as part of an existing agreement, while the city of Rockford has tentatively agreed to help defray the cost of constructing a new parking lot at the Chicago / Rockford International Airport to accommodate the additional employees.

The expansion project, to be completed by November before this year's holiday shipping season, should create 100 new jobs within the next two years and a total of 200 new jobs within the next three years. Currently, UPS employs 1,450 people in Rockford.

The package sorting hub in Rockford is used to support UPS's Next Day Air(R) network and is one of six regional air hubs operating in the United States. UPS continues to enjoy strong growth in its air business, most recently reporting a 9.3% increase in first quarter Next Day Air volume. The company also is building a new air freight hub in Rockford that will open this summer.

"The city is very excited to once again partner with UPS to bring more jobs and economic benefits to Rockford citizens," said Rockford Mayor Larry Morrissey. "This further demonstrates that Rockford is a key location for global logistics."

UPS long has enjoyed a special relationship with the state of Illinois, the city of Rockford and the Chicago / Rockford International Airport. Gov. Rod Blagojevich, through his Department of Commerce and Economic Opportunity, offered tax credits for job creation under the Economic Development for a Growing Economy program for the air freight facility.

"Gov. Blagojevich and I recognize that in this global economy, companies have more choices than ever when it comes to deciding where to do business," noted Jack Lavin, the director of the Illinois Department of Commerce and Economic Opportunity. "Our mission is to work tirelessly to provide all the resources that firms like UPS need to compete and thrive so that Illinois emerges from the field as the right choice. UPS's announcement that it plans to again grow and expand in Rockford is another indication that we're achieving a great deal of success in that effort."

UPS is the world's largest package delivery company and a global leader in supply chain services, offering an extensive range of options for synchronizing the movement of goods, information, and funds. Headquartered in Atlanta, UPS serves more than 200 countries and territories worldwide. UPS stock trades on the New York Stock Exchange (UPS) and the company can be found on the Web at UPS.com.

CONTACT: UPS, Atlanta Robert S. Godlewski, 404-828-7896 KEYWORD: ILLINOIS GEORGIAINDUSTRY KEYWORD: AIRLINES TRANSPORTATIONSOURCE: UPS