FedEx Corp. will invest $23.5 million to build a new FedEx Ground distribution center in Sauget, Ill. The 181,000-square-foot distribution center is scheduled to open at Sauget Industrial Parkway in August 2014.
Once fully operational, the new facility will process 10,000 packages an hour. The center is part of FedEx Ground’s nationwide network expansion plan, which has added 11 major hubs and expanded or relocated 500 facilities across the U.S. since 2005. FedEx Ground currently operates 16 facilities in Illinois.
“FedEx Ground is thrilled to join the Sauget community, and we’re grateful to Governor (Pat) Quinn for his support,” Scott Burns, FedEx Ground regional vice president, said. “The site was selected for its ease of access to major highways, its proximity to customers’ distribution centers, and its strong local workforce for recruiting employees that allows us to continue to provide the world-class service our customers have come to expect.”
Sauget FXG LLC, a subsidiary of Jones Development Company LLC, a Kansas City-based industrial real estate company, purchased the 32 acre site in April 2013. JDC will develop the site and lease the newly-constructed building to FedEx Ground. The facility in Sauget will mark the 13th that JDC has developed in Illinois and the 57th facility developed for its tenant, FedEx Ground.
The Illinois Department of Commerce and Economic Opportunity is administering the state’s business investment package for FedEx Ground. The company will be eligible for tax credits, based on job creation, worth $459,000 over 10 years. The tax credits are based on performance and the company is not eligible for them unless it meets its commitment to create new jobs and invest in the community. FedEx will also be eligible for training grants to enhance the quality of its workforce.
FedEx Ground specializes in small-package ground shipping, offering business-to-business delivery and residential services. The company employs approximately 50,000 people and its operations are supported by about 9,000 independent businesses that pick up, deliver and transport more than 5.6 million packages daily throughout the U.S. and Canada. The company generated $9.5 billion in revenue for fiscal year 2012.