CANADA POST



CANADA POST

June 04, 2010 10:30 ET

Canada Post Opens New State-of-the-Art Mail Processing Plant

$100-million investment part of initiative to modernize postal operations

WINNIPEG, MANITOBA--(Marketwire - June 4, 2010) - Canada Post Corporation achieved a major milestone today in its multi-year program to modernize the Canadian postal system as it formally opened its new state-of-the-art mail processing plant in Winnipeg. Built at a cost of more than $100 million, the facility is the company's first new mail processing plant in more than 20 years and is a part of an overall investment of $160 million in the city. The new plant is situated on 27 acres of land near the James Armstrong Richardson Airport, replacing the 52-year-old plant in downtown Winnipeg.

The new facility houses a 250,000 square foot mail sorting plant; features 41 dock loading bays; and has 25,000 square feet of office space. When fully operational, the plant will employ 400 people from the region in well-paying, quality jobs.

In addition to housing state-of-the-art technology, the new processing facility is the company's first plant to be registered a Leadership in Energy and Environmental Design (LEED) building. It has been designed with special considerations for employees' health and safety.

The new Winnipeg plant was built as part of Canada Post's "Postal Transformation" initiative, a multi-year plan to invest $2 billion in new infrastructure, equipment and technology to modernize Canada Post's operations. The plan, once fully implemented in 2017, will result in enhanced service for Canadians, a better, more efficient and productive postal service and substantial annual cost savings of approximately $250 million per year compared to present levels.

"This mail processing plant is a critical first step to building the Modern Post," says Rob Merrifield, Minister of State (Transport) and minister responsible for Canada Post. "The Government of Canada is extremely proud of Canada Post's continued efforts to strengthen the postal system for people in every part of this country. This new plant is an example of this foresight and vision."

"This plant is the cornerstone of Canada Post's overall plan to strengthen its role as a leading transportation and logistics company in Canada," says Moya Greene, president and chief executive officer for Canada Post. "The Winnipeg plant is a world-class postal facility that will serve as a model for other parts of the overall operation."

Following approval by Canada Post's Board of Directors in October 2007, the "Postal Transformation" program was implemented and Winnipeg was chosen as the first location for a new state-of-the-art mail processing plant. The design and construction of the Winnipeg plant, like other elements of the Postal Transformation program, were influenced by modernization efforts undertaken by other postal services around the world.

Through Postal Transformation, Canada Post is investing in equipment, vehicles, and computer systems in numerous cities across Canada. This investment includes new generation mail-processing equipment and systems, new ergonomic fuel-efficient vehicles for our delivery employees, and newly designed carts and containers for moving the mail safely through facilities.

About Canada Post

With 71,000 employees and more than 6,500 post offices, The Canada Post Group – including affiliates Purolator Courier and SCI Group, as well as Innovapost (a joint venture with CGI), maintains the largest retail and transportation network in the country. Canada Post delivered close to 11 billion pieces in 2009 to 15 million addresses across Canada, posting $7.3 billion in revenue. Canada Post provides innovative physical and electronic delivery solutions, creating value for our customers, employees and Canadians. Canada Post has been chosen as one of Canada's Top 100 employers by Mediacorp for the past four years and in 2009 was named "Most Iconic Brand in Canada" by Brand Finance Canada. Website: www.canadapost.ca.

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