DHL Express announced Tuesday that it will double the operational footprint of its main European hub in Leipzig, Germany, to accommodate future shipment volume growth. The company plans to invest 150 million euro ($205.72 million) to construct additional warehousing, sorting and office facilities with a territory of approximately 44,000 square meters.
A new shipment sorting system will increase the processing capacity of the hub by 50 percent, to more than 150,000 shipments per hour. Work on the new facilities will begin in December 2013, with the new, expanded warehouse expected to be operational from the fourth quarter of 2014.
“Our European Hub in Leipzig is a critical part of our express infrastructure and one of three global hubs that form the backbone of the DHL network. Since we established operations here five years ago, it has been a driver behind DHL’s ability to help customers in Germany and other European markets who are trading internationally expand and grow. This investment will allow us to support our customers’ future growth requirements, while further strengthening both DHL’s service capabilities and our economic contribution to Leipzig and the surrounding region,” John Pearson, chief executive officer, DHL Express Europe, said in a statement.
Approximately 400 additional jobs will be created by the expansion, and the facility will also incorporate green technologies, reinforcing the company’s commitment to environmental sustainability.