FedEx to invest $1.5 billion to expand Indy plant over next 7 years

File photo courtesy of Getty Images

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.

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