UPS announced Thursday it would offer express package service across much of China by September. The new UPS operation will initially link 23 major metropolitan areas with next-day service, and will expand further in the future. The contract-only service is already available to selected customers in five major metro areas, with the balance to be implemented by September.

UPS began taking control of its operations inside China under an agreement announced last December. The deal, reached with UPS's long-time China partner Sinotrans, opened the way for operations in the 23 business centers to be transferred to UPS by this September.

In the last year, UPS has expanded to 18 the number of weekly jet flights to and from China and will add another three daily flights in 2006. In April, UPS became the first U.S. airline to launch non-stop service between the United States and Guangzhou, which lies strategically in one of China's fastest growing manufacturing regions.

In addition, UPS Supply Chain Solutions, the logistics arm of UPS, has opened three new warehouse and freight distribution centers in Shanghai, Suzhou and Futian and is executing plans to open another 20 facilities in major cities over the next two years. UPS Supply Chain Solutions already is operating more than 40 logistics centers in China.