FedEx to invest $1.5 billion to expand Indy plant over next 7 years
INDIANAPOLIS, Ind.– FedEx announced three major programs Friday, including a large investment into an Indianapolis plant.
The company says the recently enacted U.S. Tax Cuts and Jobs Act prompted them to commit more than $3.2 billion in wage increases, bonuses, pension funding and expanded investment.
Included in the plan is to invest $1.5 billion to expand the FedEx Express Indianapolis hub over the next seven years, as well as modernize a SuperHub in Memphis.
The company is also investing more than $200 million in increased compensation, about two-thirds of which will go to hourly team members by advancing 2018 annual pay increases by six months to April 1 from the normal October date. The remainder will fund increases in performance- based incentive plans for salaried personnel.
They will also voluntarily contribute $1.5 billion to the FedEx pension plan.
FedEx believes the Tax Cuts and Jobs Act will likely increase GDP and investment in the United States.