ATLANTA, Ga -- UPS announced on Thursday that is plans to build a new, $400 million hub on Atlanta's west side.

The regional packaging hub will be the carrier's third largest processing facility in the U.S., according to a UPS statement.

Construction will begin this month on the 341-acre industrial site. The project is expected to be fully operational by the end of 2018 with 1,250 new employee positions.

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“This strategic capital investment will feature state-of-the-art technology," said UPS Chairman and CEO David Abney.

More than 100,000 packages per hour will be carried over 15 miles of conveyors using automated processing equipment. The hub will also include a delivery vehicle center capable of dispatching more than 280 trucks for delivery and pickup, and a UPS Customer Center for retail service.

“This investment in southwest Atlanta will not only create 1,250 new jobs, but strengthen our position as an international hub for logistics supported by the world’s busiest passenger airport and the many global companies who call Atlanta home,” said Atlanta Mayor Kasim Reed.

“With this investment, UPS will use Georgia’s location, transportation infrastructure and logistics sector to reach customers more quickly and more efficiently,” said Gov. Nathan Deal.