UPS to build regional distribution facility in Round Rock

Company will invest $70 million, employ more than 300 at facility expected to open in 2018

United Parcel Service (UPS) will build a new distribution facility in Round Rock, employing more than 300 employees at a $70 million facility. The building is expected to open at the end of 2018, according to the company.

“We are thrilled to welcome UPS to Round Rock,” Mayor Alan McGraw said. “As one of the world’s largest companies, UPS is an all-around good corporate citizen and is known for its charitable giving, community partnerships, and energy conservation programs. UPS is a company that invests in its employees with a focus on training, education, and work-life balance and is a great addition to our city.”

The City Council voted 6-0 Thursday, May 12, on an incentive agreement with UPS. To receive the incentives, UPS must purchase 50 acres, build at least a 100,000-square-foot facility worth $70 million and employ at least 314 at the site. The jobs must have an annual average salary of at least $50,000 a year.

The regional expansion into Round Rock will provide additional operating capacity for UPS in the greater Austin area, fortify its existing distribution network, and accommodate future growth in Central Texas. The new facility will be located on approximately 50 acres near SH 45 and A.W. Grimes Boulevard.

“UPS is focused on helping our customers in Texas and around the world solve their logistics problems,” said Craig Wiltz, president of UPS’s Red River District. “This new facility in Round Rock will provide additional pickup and delivery service to UPS customers throughout the area so they can focus on growing their business.”

The building’s automated sorting systems are designed to move packages through the sort process capturing package data and routing volume to proper load positions. Six-sided decode tunnels will capture package information from address labels. Label applicators will place “smart labels” on packages for local delivery, providing UPS loaders faster instruction of proper loading versus conventional systems. This enhancement is part of UPS’s suite of package flow technologies.

The building’s footprint will be roughly 225,000 square feet sitting on approximately 50 acres of land, according to UPS. The facility’s team will provide pickup and delivery services to UPS customers in the greater Austin area. The Round Rock building is expected to open at the end of 2018.

If the company meets the employment and investment thresholds, the City will make incentive payments equal to: 100 percent of the company’s City property tax payment from 2019-2021; 75 percent from 2022-2023; 50 percent from 2024-2025; and 25 percent in 2026. In addition, the City will make additional incentive payments to UPS of $250,000 in 2019 and 2020. The City also agrees to waive site preparation and construction permit fees, and road impact fees up to a maximum of $150,000.00. Water and wastewater utility service impact fees are not included in the waiver. The total value of the incentive is approximately $2.1 million.

UPS, the City and Williamson County will share the costs of improving Roundville Lane to accommodate the facility.

UPS operates an extensive network of facilities around a central package distribution hub in the Austin area, a territory that spans from Belton to San Marcos.

UPS is a global company with headquarters in Atlanta and employs more than 440,000 people around the world. UPS manages the flow of goods, funds, and information in more than 220 countries and territories worldwide. The company currently has 117 facilities in the state of Texas, employing 22,000 people.

“This is a great project for Round Rock as we continue to diversify our economy,” said Ben White, the Round Rock Chamber’s vice president of economic development. “We welcome another Fortune 500 company that is making a significant investment in employment and capital in Round Rock. This is another great example of the chamber, the city, and the county working side-by-side to bring a major employer to town.”

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