USPS is looking to reduce the size of its Area Mail Processing (AMP) plant network from around 461 facilities to under 200 over the next few years, and is expected to complete closure reviews in the next two weeks.

Yesterday at the latest quarterly Mailers’ Technical Advisory Committee meeting at USPS headquarters, executives said that the smaller number of surviving mail processing plants would be supported by hundreds of smaller area “hub” facilities for more localised distribution of processed mail.

These hubs could be set up in existing USPS sites that have other functions like business mail entry and retail facilities, but many are likely to be subcontracted out to distribution partners.

“It’s all being designed around efficient transportation,” said USPS vice president of network operations Dave Williams yesterday.

Details on exact plants to be closed, and which three-digit zip codes will apply to which surviving plant, are to be revealed soon after the AMP reviews are completed.

Hopes are that the overall network restructuring will take around $2.6bn in annual operating costs out of the system, with closures set to begin after the current moratorium runs out on May 15.