FedEx, France announce expansion

Sorting capacity at hub outside Paris to increase

FedEx unveiled plans Tuesday for a $220 million expansion of one of its principal European hubs outside Paris.

French officials are touting the expansion and a new 30-year lease as a $1.54 billion vote of confidence in France in the wake of Britain’s decision to exit the European Union.

The expansion was jointly announced by FedEx Express president and chief executive David Bronczek and French President Francois Hollande.

The Memphis-based company will expand sorting capacity by 40 percent at its FedEx Express distribution hub at Charles de Gaulle International Airport. The project is scheduled to begin next summer and to be completed by 2019.

The announcement signals FedEx’s continuing focus on European expansion, coming after FedEx closed earlier this year on the nearly $5 billion purchase of Netherlands-based TNT Express.

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, oversized 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.”