Peloton To Build First US Factory in Ohio; Will Spend $400 Million, Create 2,000 Jobs

AP News  |

Video source: YouTube, WKYC Channel 3

Peloton plans to spend about $400 million to build its first U.S. factory in Ohio.

The exercise equipment maker said Monday that the Peloton Output Park will make the Peloton Bike, Bike+ and Peloton Tread starting in 2023. It will have more than 200 acres and more than 1 million square feet of manufacturing, office and amenities space.

Peloton Interactive Inc. said it plans to break ground on the site in Troy Township over the summer. The company anticipates adding more than 2,000 jobs in Ohio over the next few years. Positions will span corporate, manufacturing, assembly and quality assurance functions.

The New York-based company employs about 3,700 people, according to FactSet.

Peloton has faced surging demand during the pandemic. It reported that revenue in the first three months of the year more than doubled on strong subscription growth. Last December, the company spent $420 million to acquire Precor, a company whose fitness machines populate hundreds of commercial and hotel gyms. That deal gave Peloton its first manufacturing capacity in the U.S.

“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,” said Peloton CEO John Foley.

The plans still need final approvals from state and local officials.

Shares of Peloton fell less than 2% in afternoon trading.

_____

Source: AP News, WKYC Channel 3

Market Movers

Sponsored Financial Content