Peloton said Monday it will invest $400 million to build its first factory in the United States to speed up production and delivery of its popular cyc

Peloton to invest $400 million to build its first U.S. manufacturing facility in Ohio

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2021-05-24 18:30:04

Peloton said Monday it will invest $400 million to build its first factory in the United States to speed up production and delivery of its popular cycles and high-end treadmill machines.

After vetting a number of locations, it selected a 200-acre site in Troy Township in Wood County, Ohio, to construct more than 1 million square feet of manufacturing, office and amenities space, the company said.

Peloton expects to break ground later this summer on the project, which should bring more than 2,000 jobs to the area. The facility should be up and running by 2023.

"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 co-founder and CEO 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."

The at-home fitness company currently manufactures its products at third-party facilities in Asia. Faced with heightened consumer demand during the Covid pandemic, it has run into lengthened delivery delays that have frustrated consumers and investors. In February, it said it would spend more than $100 million to speed up shipments using air and expedited ocean freight.

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