United Parcel Service aircrafts are loaded with containers full of packages bound for their final destination at the UPS Worldport All Points International Hub in Louisville, Kentucky in this December 22, 2010 file photograph.[Photo/Agencies]

ZHENGZHOU-- United Parcel Service (UPS), the world's largest package delivery company, will open a new branch in Zhengzhou, the capital of central China's Henan province, according to a memorandum of understanding (MOU) signed with the local government.

The US company said it will set up a Zhengzhou-based branch for package delivery and logistic services in order to tap into China's growing express delivery industry.

Meanwhile, UPS will also work with the local government which plans to build Zhengzhou a new aviation hub of China, the Henan Daily, a local newspaper, reported on Wednesday.

Zhengzhou's central location in China will facilitate UPS's expansion, Daniel Brutto, president of UPS International, was quoted as saying at Tuesday's signing ceremony of the MOU.

UPS has invested heavily in China, and its local operations have maintained double-digit growth, even during the global financial crisis, Brutto said.

Fueled by the nation's rapid growth of online shopping business, China's express delivery industry has experienced fast development, topping 10 million parcels delivered per day at the end of last year.

The figure represents the third largest volume globally after the United States and Japan, according to statistics released by China's State Post Bureau (SPB).