Parcel delivery company Hermes has announced it is to build a £31 million automated parcel distribution hub in Rugby, Warks. This will be the biggest single investment the company has ever made, and is a signal the company is planning additional reach in its network.

The quarter of a million square foot Midlands Super Hub will have the capacity to handle up to 1.1 million parcels every day, and will increase the company’s overall parcel processing capacity by over 45% in one hit, as well as creating 200 new, permanent jobs.

Work on the new facility started earlier this week, and will be supervised by Hermes UK’s leadership including CEO Carole Woodhead and COO Martijn de Lange. Developer Roxhill and contractor Winvic will be building the site with a view to an official opening in August next year.

Woodhead said of the new development, “As work begins at our new facility in Rugby, we are embarking on an exciting new chapter in the history of Hermes that will ensure we can continue to provide retailers with world class services and solutions. The hub’s enormous throughput capability and built-in flexibility will help to future proof our business whilst also ensuring we are in the very best position to grow alongside our clients.”

Hermes has had its busiest ever peak period up to January 2016. In December the company processed 30.3 million parcels, a figure that is 24% up on the year before. The busy festive season followed a very good Cyber Week, with the delivery company processing 8.2 million parcels.

Additionally, Hermes recently added a secondary sortation tier at its northern automated distribution hub in Warrington, which can now process up to one million parcels a day.

Woodhead added: “The substantial investment at both Rugby and Warrington shows how we continue to strengthen our network and infrastructure across the UK. This will ensure we have the capacity to cope with prolonged periods of intense activity as well as spikes such as Black Friday and Cyber Monday. We are laying the foundations for future growth, creating more employment opportunities and confirming our position as an industry leader.”