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Leading parcel firm DPD is to invest £175m to expand its capacity to meet growing demand from the online retail boom. The investment will create 1,500 new, full-time jobs.

DPD plans to build a new, purpose-built £100m parcel sorting hub – one of the largest of its kind in Europe – in the East Midlands in addition to refurbishing two of its other hubs to increase the number of parcels it can handle each night. The investment follows a period of unprecedented growth spearheaded by the company’s Predict service which was launched in March 2010 and has generated over £70m of new business to date and over 1,000 new full-time jobs in the past 12 months, as a flood of major retailers switched to DPD.

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