UPS to consolidate Menlo operations in Louisville
One day after announcing it would close the air cargo hub of recently acquired subsidiary Menlo Worldwide Forwarding, UPS said it would transfer the heavyweight operations of the Dayton, Ohio facility to its massive packaging handling and distribution center in Louisville, Ky.
UPS said it will build a $82.5 million, 700,000-square-foot heavy freight facility adjacent to its package operations to integrate the heavy shipment process into its existing distribution network.
Thursday's decision by the Kentucky Economic Development Finance Authority to extend up to $20 million in tax incentives to UPS was a key factor in locating the facility in Kentucky, UPS said.
The expansion will allow UPS to offer international and domestic overnight, expedited, second-day and deferred air freight services through the Worldport hub in Lousiville.
The Dayton hub is scheduled to be closed in mid-2006. UPS said job losses in Dayton would be offset by the creation of 720 new jobs in Louisville, including an initial 120 full-time positions. More than 400 full-time positions are expected to be created during the next 10 years.