FedEx Plans $150 Million Hub in China

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FedEx Corp. will build a new Asia Pacific hub at the Guangzhou Baiyun International Airport in southern China to support a growing customer base doing business in and with the Chinese and Asia Pacific markets.

The new hub begins operations in December 2008, at which time the hub in Subic Bay, the Philippines, will close, the Memphis, TN-based company said yesterday.

The Guangzhou facility, representing a $150 million capital investment, will have 82,000 square meters of floor space on 155 acres. It will employ 1,200 people at first and sort up to 24,000 packages an hour, double the capacity of the Subic Bay facility.

FedEx said forecasts call for an increase in manufacturing and trading, both within Asia and internationally, for the next 30 years. The planned hub also will let FedEx improve service levels for locations in China.

FedEx said it will maintain its presence in the Philippines. It is developing a regional center and expanding an operations gateway in Manila.

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