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Peloton Interactive .Inc,(PTON) a manufacturer of home fitness equipment, announced on Monday that it will build its first factory in Ohio and begin production in 2023.It chose a 200-acre site in Troy Township, Wood County, Ohio, after vetting many options, to build more than 1 million square feet of manufacturing, office, and amenities space, the company said.
Peloton stated that it will invest about $400 million in the plant and create more than 2,000 jobs over the next five years.We are thrilled to bring a good portion of our manufacturing to United States soil and proud that it will be in the great state of Ohio, said Peloton's CEO and co-founder John Foley, in a statement.
While we will continue to invest in our Asian manufacturing footprint as well as our existing facilities in the U.S. via our Precor sites….”According to the group, the factory will be the newest addition to the company's rising global production network, which includes third-party partners in Asia and Peloton's facilities.Currently, the at-home fitness company manufacturers its products in third-party factories in Asia.
Due to increased market demand during the Covid pandemic, it has experienced lengthy distribution delays, which have irritated both customers and investors. It announced in February that it would invest more than $100 million to expedite shipments via air and expedited ocean freight, CNBC reported.Potential buyers will be able to visit the Ohio factory to see the company's goods or arrange visits to see the cycles and treadmills being manufactured, the company said.The location will also have a fitness center for its employees.
The factory in Ohio will be dedicated to producing Peloton's award-winning Peloton Bike, Bike+, and Peloton Tread, company said. This year, Peloton's stock has dropped 34% as the company in May recalls its two treadmills after safety hazards mentioned by Consumer Product Safety Commission.Peloton's total revenue increased 141 percent to $1.26 billion, beating analysts' estimates of $1.11 billion in the fiscal quarter ended March 31. Peloton anticipates $915 million in revenue in the current quarter.