UK Pallets, mail carrier Business Post's freight distribution division, has announced a multi-million pound investment program, according to a report in the Birmingham Post.

The Lichfield-based company, which employs 200 people, predicts its business will grow by over 10% this year and projects similar growth for the next three years.

As part of its expansion program, UK Pallets just received a delivery of 30 Scania trucks that will replace and augment its existing distribution fleet.

At its national hub in Fradley Park, 140,000 sq ft (12,006 m²) of storage space is being created and 70,000 sq ft (6503m²) of warehousing space is being planned. The site currently handles about 5,500 pallets a night. The extension will be completed in the first half of 2008.

It is also investing in a range of handheld and forklift-mounted scanners for staff and customers to track freight throughout the operation.

UK Pallets operates a nationwide express pallet delivery service through its network of 70-plus logistics and distribution companies. Parent company Business Post has an 8% share of the UK's premium express delivery market.