FedEx To Invest $1.5 Billion in France to Double Capacity at Roissy Airport
FedEx, package delivery company said that they would be investing 1.4 billion euros ($1.5billion) to double the capacity of its logistic activities at Charles de Gaulle International Airport in Paris suburb of Roissy.
200 million euros or $220 million is the initial investment of the US firmware for the extension of its facility in Roissy and the remaining 1.2 billion euros will be representing the payment for the rent for the coverage of over 30 years.
The U.S group is planning to open a new package sorting facility in 2019 creating between 200 and 400 jobs, that is according to document that is handed out during a visit by President Francois Hollande.
The expansion was jointly announced by FedEx Express president and chief executive David Bronczek and French President Francois Hollande.
Hollande said in a statement, "Britain's decision to leave the European Union should make us seek even more investments, make us showcase France's attractiveness."
David Binks, president of FedEx Express Europe and chief executive of TNT Express, said, "This investment is part of the company's network expansion strategy, creating more capacity and enabling more business connections in Europe and around the world.
"This new expansion, coupled with the recent TNT acquisition, supports the evolving needs of our customers and the global marketplace while increasing our ability to support trends like cross-border e-commerce," Binks added.
The expansion will include FedEx Express' first automated sorting system for large, over-sized packages
to meet the demands of e-commerce growth.
Bronczek said, "This strategic expansion in Paris is an example of how we will continue to invest to move goods faster and more reliably across borders, which means our customers can decrease costs, improve their supply chain and identify new opportunities for growth and profitability."
Delivery service company TNT Express, which was bought in May by FedEx, also plans to open a new facility in the Parisian region, according to the same document