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Delivery firm DHL said Friday it planned to invest $1.2 billion in its North America operations to significantly increase capacity and service options.

DHL, which purchased Airborne Inc. last year, is a unit a Germany's Deutsche Post AG.

"This investment marks an historic turn in the express and ground parcel delivery business as DHL brings a strong alternative to the U.S. shipping market," said John Fellows, chief executive officer of DHL Express Americas.

DHL said it would add seven regional sort centers throughout the United States to increase ground delivery capacity by 60%. The centers would service air and ground services, the company said.

After 2005, DHL said it would build another five sorting centers, bringing the total to 24 nationwide.

It also said it was consolidating air hub operations from Greater Cincinnati/Northern Kentucky International to a primary facility in Wilmington, Ohio.

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