Parcel delivery service Hermes is set to build a new automated delivery hub at Rugby, in the Midlands of England.

The hub will be the single largest investment that Hermes has made and its construction will cost £31 million, reports Logistics Manager.

The new hub will cover 270,000 square feet and will be able to process as many as 1.1 million parcels every day. These numbers are expected to see Hermes' overall processing capacity increase by 45 per cent.

It's hoped that the new building will create upwards of 200 jobs resulting in a permanent staff for the Midlands hub.

Hermes' CEO Carole Woodhead said that the building work is an "exciting new chapter in the history of Hermes that will ensure we can continue to provide retailers with world-class services and solutions".

She added that she hopes the size of the hub and its capability for processing orders will "future proof" the company's business.

Work has already begun on the new Hermes hub, with project completion expected in August 2017.