Peloton (NASDAQ: PTON) revealed Monday that it is set to invest USD400 Million to build its first U.S. factory called Peloton Output Park. The action will accelerate production and delivery for its Peloton Bike, Bike+ and Peloton Tread machines, to start in 2023.
The company researched various locations and settled on a 200-acre property in Troy Township in Wood Country, Ohio. According to Peloton, it will be building over 1 million square feet of manufacturing, office and amenity space.
At the moment the at-home fitness company manufactures its equipment in third-party locations within Asia. Nevertheless, amid the pandemic, Peloton has experienced a rise in demand, setting back deliveries and irritating both consumers and investors.
“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. “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, the new Peloton Output Park gives us a massive strategic lever to make sure we have capacity, quality, and economies of scale in our bike and tread product lines, to support our continued growth for years and years to come.”
The American exercise equipment and media company based in New York City, will begin construction of the factory this summer.
“We had planned to do this for years, but I think the pandemic put an exclamation point on why it’s going to be awesome,” Peloton CEO and co-founder John Foley said in an interview. “Having more flexibility in running a global supply chain is also going to allow us to sleep better, as you can imagine.”
Peloton shares have fallen 35% year to date and has a current market cap of USD30 Billion.