High-end exercise equipment producer Peloton is planning its first U.S. manufacturing facility.
The company announced on Monday that it will break ground this summer on a 1 million-square-foot facility in Troy Township, Ohio, which is about 17 miles from Toledo.
The complex, due to rise on a 200-acre site, will include manufacturing space, offices and various amenities for employees, CNBC reported. Peolton aims to open the facility by 2023.
Peloton currently manufactures its high-end home exercise equipment in Asia. The company said it has faced delays related to the coronavirus pandemic and in February announced a $100 million investment meant to speed up shipments, according to CNBC.
The company’s share value has dropped 35 percent so far this year. Peloton CEO and co-founder John Foley said the company planned to open a U.S. facility “for years.”
“But I think the pandemic put an exclamation point on why it’s going to be awesome,” Foley said. “Having more flexibility in running a global supply chain is also going to allow us to sleep better, as you can imagine.”
The brand’s popularity has grown since the onset of the pandemic as more people sought ways to exercise at home. Total revenue nearly tripled from $524.6 million to $1.26 billion between 2020 and 2021.
Landlords and agents are even using the company’s name in marketing materials. StreetEasy found that the number of listings containing the word “Peloton” increased 170 percent between March and September.
[CNBC] — Dennis Lynch