FedEx Ground, an operating unit of FedEx Corporation, will construct a new hub in Perrysburg, Ohio, to replace an existing operation in nearby Toledo. According to a company statement, the total investment is expected to reach $87 million, including cost of land, construction, and material-handling equipment. The 400,000-square-foot facility is expected to maintain the Toledo operation's 550 employees and increase to more than 800 workers upon completion in 2009. The site was chosen due to its access to major highways, its customers' existing distribution centers, and a strong labor pool. "This new facility will help us meet the growing demand of local shippers and serve as one of just two gateways for shipments destined to Canada," says Michael P. Mannion, the company's senior vice president for operations. Construction is expected to begin immediately.