FRANKFORT, Ky. (May 28, 2015) – Kentucky’s position as the center of global logistics is becoming stronger.
Gov. Steve Beshear today announced that DHL Express plans to invest $108 million to expand its hub at the Cincinnati/Northern Kentucky International Airport (CVG).
DHL, a leading global logistics company, also plans to create up to 50 new jobs.
“DHL Express continues to be a valuable resource in the Commonwealth, not only for our strong logistics network, but also for the northern Kentucky community,” said Gov. Beshear. “I’ve been proud to celebrate DHL’s growth during my time as Governor, and I look forward to seeing the company’s continued success in Kentucky for years to come.”
The expansion will allow DHL to grow its aircraft fleet and international express volumes. The company plans to add new aircraft gates, further automation, storage warehouse space.
The DHL Express global hub sits at the heart of the DHL U.S. network, with flights connecting customers from more than 220 countries and territories worldwide to every corner of the United States. In addition to global hubs in Hong Kong and Germany, the CVG hub completes the backbone of the DHL intercontinental network.
“Our hub at the CVG airport is the backbone of our network for the Americas, since it is the central point for shipments in and out of this region where we expect to see continued growth,” said Stephen Fenwick, CEO of DHL Express Americas. “Our new investment this year is an endorsement of our commitment to the Cincinnati/northern Kentucky area and to our business partners who have worked alongside DHL to ensure our continued success.”
The expansion is the latest in a series of investments DHL has made in northern Kentucky. Since 2009, DHL has invested $280 million in its CVG facility including a $47 million expansion in 2012 that included a new 193,000-square-foot large-sort facility and a $46 million investment last year to upgrade its small-sorting equipment, which helped create 130 new jobs.
With more than 2,000 employees in northern Kentucky, DHL is part of Deutsche Post DHL, headquartered in Bonn, Germany. The company established its principal U.S. air hub at CVG in 2009.
“DHL’s continued investment and expansion at Greater Cincinnati/Northern Kentucky International Airport is welcome news for our region’s economy,” said Sen. John Schickel, of Union. “We appreciate the company’s decision to increase its presence in northern Kentucky.”
“I’d like to thank DHL’s leadership for expanding in Boone County and creating new jobs for our residents,” said Rep. Addia Wuchner, of Florence. “Northern Kentucky is a strong logistics epicenter thanks to our central location and DHL’s presence at CVG.”
“I appreciate DHL’s commitment to our region and the new jobs being created in Boone County,” said Boone County Judge-Executive Gary Moore. “DHL’s newest expansion showcases our international airport and the strength of workforce in northern Kentucky.”
“DHL leads our region as the largest employer in the distribution/e-commerce industry,” said Kenton County Judge-Executive and Tri-ED Board Chair Kris Knochelmann. “Its super hub, one of only three in the world, is a high-tech operation that employs thousands of residents and ships millions of international packages into and out of CVG each night.”
To encourage the investment and job growth in northern Kentucky, the Kentucky Economic Development Finance Authority approved the company for tax incentives up to $1 million through Kentucky Enterprise Initiative Act (KEIA). KEIA allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing equipment.
For more information on DHL, visit www.dhl.com.
Information on Kentucky’s economic development efforts and programs is available at www.ThinkKentucky.com. Fans of the Cabinet for Economic Development can also join the discussion on Facebook or follow on Twitter. Watch the Cabinet’s “This is My Kentucky” video on YouTube.
A detailed community profile for northern Kentucky can be viewed here.
For more information about Northern Kentucky Tri-ED, visit www.NorthernKentuckyusa.com. Northern Kentucky Tri-ED can also be followed through social media channels via Facebook, LinkedIn, Twitter and YouTube.
The Kentucky Cabinet for Economic Development is the primary state agency responsible for encouraging new jobs and investment in the state. New capital investment announced in Kentucky in 2015 totaled a state record $5.1 billion, spurring more than 16,000 projected new jobs. Information on available industrial properties, workforce development assistance, incentive programs, community profiles, small business development and other economic development resources is available at www.ThinkKentucky.com.