Update: Peloton announced February 8, 2022 that it would cancel plans to build its Troy Township factory amid a company-wide downsizing.
Peloton Interactive, Inq., announced new plans May 24 for its first U.S. manufacturing facility. The New York, New York-based exercise equipment company selected Troy Township, Ohio, about 10 miles south of Toledo, for the plant’s location.
Peloton says it will spend about $400 million constructing Peloton Output Park, which will eventually employ more than 2,000 people and produce Peloton’s Bike, Bike+, and Tread products when it becomes operational in 2023. The company expects to break ground in summer 2021 on the million-square-foot factory, which Peloton president William Lynch says will use “renewable energy sources.”
Co-founder and CEO John Foley said he was “thrilled” to bring some of the company’s manufacturing operations 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,” he said.
Precor, the exercise equipment company purchased by Peloton in December 2020, has two manufacturing locations in North Carolina and Washington. Pelton currently sources its bikes and treadmills from Taiwan, but the company says it ran into supply issues when demand for its at-home exercise equipment leapt during the coronavirus pandemic.
Ohio Governor Mike DeWine, in a statement, noted the COVID-19 pandemic “has demonstrated the need to on-shore manufacturing and rebuild supply chains,” and said Peloton’s decision to build its first U.S. factory in Ohio was “a great example of an American company stepping up and leading that effort.” The Ohio Tax Credit Authority has approved a 15-year 2.3% job creation tax credit for the factory.
An earlier version of this article stated the plant would be in Troy, Ohio. It will actually be located in Troy Township, Ohio, in Wood County.
