Economic Development Newsroom

Louisville Selected for Major UPS Expansion Expansion to Create up to 1,000 New Jobs

Friday February 25, 2005

Chad Carlton, 574-1902 / 439-5075
Matt Kamer, 574-1903 / 797-6276

Mayor Jerry Abramson today joined Governor Ernie Fletcher and state and local economic development officials in announcing that UPS will locate an air-freight servicing hub in Louisville.

The project is expected to create 400 new full-time and up to 600 new part-time jobs over the next 10 years, with an estimated annual payroll of $12 million. UPS is the world’s largest package-delivery company and global leader in supply-chain services.

“We greatly appreciate UPS reaffirming its commitment to Kentucky and Louisville by again expanding operations here,” Abramson said. “Our community’s investment in the airport expansion project continues to pay off in terms of economic dividends and opportunities for business. UPS has become a tremendous part of the economic engine created through our airport project.”

Based on current plans, UPS will construct a 785,257-square foot air-freight servicing hub at its existing site to be responsible for the loading, unloading, sorting, distribution, buildup, and breakdown of air-freight volume and would be the cornerstone of UPS’s air-freight business. The $82.5 million expansion would allow UPS to offer international and North American overnight, expedited, second-day and deferred air-freight services through its Worldport Hub.

The Kentucky Economic Development Finance Authority (KEDFA) preliminarily approved UPS yesterday for tax credits up to $20 million under the Kentucky Jobs Development Act (KJDA), an incentive program aimed at increasing the number of service and technology-related jobs in the Commonwealth. Louisville Metro is providing 10 percent of the total incentive package offered for this expansion, rebating up to one percent of the local occupational tax revenue for new jobs created over the next ten years.

“UPS is grateful that the state extended this offer,” said John Hindman, UPS Airlines Vice President of Public Affairs. “UPS wants to continue to build on the highly successful partnership UPS and Kentucky have long enjoyed.”

Currently the largest private employer in Kentucky, UPS employs 11,556 full-time and 8,487 part-time people statewide. 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

“I am thrilled that UPS, which is already Kentucky’s top private employer, has chosen Louisville as the location for a major expansion,” said Governor Ernie Fletcher. “The expansion will create hundreds of new jobs and create new opportunity for Greater Louisville’s competitive workforce. My administration is committed to economic development, and I commend UPS for working with us to make Kentucky a better place to live, work, and do business.”