UPS Unveils $125 Million Automated Fulfillment Centre as Part of Canadian Investment

March 23, 2018

One of the largest shipping companies in the world is committing a huge amount of money and bringing new technology to Canada.

In a special announcement with Prime Minister Justin Trudeau, UPS CEO David Abney announced a $500 million investment into the company’s Canadian infrastructure, which will add more than 1,000 jobs to the economy. UPS’ announcement also includes a new state-of-the-art $125 million 180,000 square foot automated sorting facility, the company’s first in the country.

“UPS is the kind of company we want in Canada, one that invests in its people and creates better opportunities for hardworking folks to get ahead. I am thrilled they will expand their Canadian operations, invest in our economy, and create so many good, well-paying middle-class jobs for Canadians,” said Prime Minister Justin Trudeau.

Canada was the first country UPS ever expanded in outside of the U.S. and the company now has more than 12,000 employees and facilities totalling more than 63 million square feet in the country.

“UPS Canada is capitalizing on customer growth and solid operating leverage,” said David Abney. “Strong returns coupled with continued customer demand create an optimal time for this investment that we expect to even further contribute to Canada’s vibrant economy.”

The new massive automated sorting facility will be built in Montreal as an expansion to UPS’ current hub in the city. The construction and conveyor companies for the facility were Canadian companies and they use innovative sorting and fulfillment technologies to allow UPS to keep up with the biggest competitors in the business.

The expansion includes automation through a series of optical scanners that can read labels on packages then route them through the facility to their final outbound area. This is expected to triple UPS’ current sorting capabilities. This technology will feature prominently in the $125 million Montreal expansions but is also being implemented into many newer facilities in the country as well.

The new facilities and investments could mean good news for Shopify and their merchants, as the Canadian e-commerce giant recently partnered with UPS to offer premium shipping services to small businesses.