UPS wins incentives from Kentucky for $750 million expansion, plans to hire 1,000

United Parcel Service is planning a major expansion in Louisville that would mean a decade of job growth.

According to documents filed with the Kentucky Economic Development Finance Authority, Atlanta-based UPS is considering a $750 million expansion and 1,000 new jobs over the next 10 years.

UPS, which is the world’s largest package delivery company, is considering building an additional two-bay hangar to support the continued expansion of its aircraft fleet at the Louisville airport, according to KEDFA. The new hangar would handle maintenance on the 747-8F aircraft.

The expansion includes enhancement projects at the airport and surrounding area as well as investments of $234 million by affiliates.

The KEDFA board on Thursday voted to approve up to $40 million in various tax incentives.

To be eligible for the incentives, UPS has to maintain base employment of more than 6,436 full-time Kentucky residents.

The company has to meet a job target the first year of 398 jobs created, with an average hourly wage (including employee benefits) of $70 an hour.

More details on the jobs are expected from the company and the state next week.

The company completed a $310 million automated Centennial hub in Louisville in May, allowing the facility to sort 85,000 packages an hour.

“UPS is a pillar of Kentucky’s business community and we both applaud and are grateful for the company’s ongoing job creation and investment,” said Jack Mazurak, KEDFA spokesman. “With approximately 29,000 full and part-time employees statewide and more than 12,000 in Louisville alone, UPS is one the commonwealth’s largest private-sector employers and a major contributor to Kentucky’s economy.

“Moreover, its Worldport and Centennial hubs are leading economic development generators in their own right. The air and ground hubs have helped attract hundreds of employers and thousands of jobs to Kentucky from companies needing fast, reliable, global shipping.”