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Tax reform savings boost UPS investments to over $12B

UPS Inc. said it will invest more than $12 billion to expand its Smart Logistics Network and increase its pension funding. The investment comes from tax savings created by the U.S. Tax Cuts and Jobs Act, said UPS.

The air freight and logistics company also plans to raise future capital spending above its previous commitment of 6% to 7% of annual revenue. It will invest an additional $7 billion over three years to construct and renovate facilities, purchase new aircraft and ground fleet vehicles and enhance its IT.

UPS recently made a $5 billion tax-qualified contribution to the company's three UPS-sponsored U.S. pension plans, representing about $13,000 per participant. The voluntary contribution raises the funding level to above 90%.

"Tax reform is a tremendous catalyst," said David Abney, UPS chairman and CEO. "Our investments will create new jobs, secure existing jobs and expand opportunities for our people."