Peloton Selects Ohio for First US Manufacturing Facility, Plans to Invest $400M
TROY TOWNSHIP, OHIO — Peloton Interactive Inc. (Nasdaq: PTON), a manufacturer of popular home bikes and treadmills, has announced plans to build its first U.S. factory in Ohio.
The New York City-based company ultimately selected Troy Township for the site of Peloton Output Park, a factory that will produce the company’s Peloton Bike, Bike+ and Peloton Tread products. The facility to be built in Wood County will be located about 16 miles south of Toledo.
Peloton plans to commit approximately $400 million to construct the facility, which will join its network of owned and third-party-owned facilities in Asia.
“The pandemic has demonstrated the need to on-shore manufacturing and rebuild supply chains, and Peloton’s decision to build its first North American manufacturing facility in Ohio is a great example of an American company stepping up and leading that effort,” says Ohio Gov. Mike DeWine (R).
Peloton’s site selection in Troy Township is contingent upon final approvals from state and local officials. The company is working closely with JobsOhio, the Ohio Development Services Agency and the Regional Growth Partnership to bring the project to Wood County. Once approved, Peloton expects to break ground later this summer and be fully operational by 2023.
“Peleton’s decision to locate their manufacturing site in suburban Toledo is very exciting news,” says Harlan Reichle, president and CEO of Toledo-based Reichle Klein Group. “Not only does it extend a remarkable streak of major projects landed over the past three or four years, including First Solar’s manufacturing plant, NSG’s new flat glass plant and Amazon’s distribution center, it brings to the region a highly recognized, trendy consumer brand. The attention that Peleton brings should help to get Toledo on the radar of more site selectors.”
Peloton Output Park is expected to create 2,174 new manufacturing jobs in Wood County across corporate, manufacturing, assembly and quality assurance positions.
The property will be situated on 200 acres and span more than 1 million square feet of manufacturing, office and amenities space. The property will include a fitness center for workers that will feature the latest connected fitness equipment and a team lounge for collaboration.
Peloton also plans to host facility tours and open an onsite showroom, which will give customers the option to check out Peloton’s products first-hand.
“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,” says John Foley, CEO and founder of Peloton. “We are incredibly excited to meet and welcome the Troy Township community into the Peloton family fold.”
Founded in 2012, Peloton currently has 5.4 million members across its global network of fitness products and apps. The company also has a growing number of retail showrooms across the United States, United Kingdom, Canada and Germany. Retail locations in Ohio include stores in Cincinnati, Columbus and Orange Village.
In its fiscal third quarter ending March 30, Peloton generated $1.26 billion in total revenue, a 141 percent increase year-over-year. The company’s stock price closed on Monday, May 24 at $101.25 per share, up from $41.70 a year ago, a nearly 143 percent increase.
— John Nelson