UPS to invest $125 Million in new Shanghai hub

United Parcel Service (UPS) is investing $125 million in a new air hub in Shanghai.

Dan Brutto, president of UPS' international operations, said the 1 million-square-foot facility, which is scheduled to begin operation in November, will feed global routes.

UPS also plans to begin construction of a $180 million intra-Asia hub in Shenzhen by the end of this year, with the opening scheduled for 2010. This will replace a hub currently in the Philippines.

Dan Brutto said he expects 40% of UPS' revenue to come from international sources by 2010, up from 25%-30% now.

UPS has announced plan to buy a logistics firm in China, while downplaying European reports it may bid around $20 billion U.S. for TNT, the second biggest European mail and logistics group.