OHIO — Peloton said Monday it's investing $400 million for the company's first U.S. manufacturing facility, which will be located in Wood County, Ohio.
The fitness giant "selected Troy Township in Wood County, Ohio for the site of Peloton Output Park (POP), a state-of-the art factory that will be dedicated to producing Peloton's award-winning Peloton Bike, Bike+ and Peloton Tread starting in 2023," the company said in a statement.
Peloton added that they expect to break ground on the facility, which is expected to be one of the largest fitness manufacturing plants in the world, later this summer.
"We are thrilled to bring a good portion of our manufacturing to United States soil and proud that it will be in the great state of Ohio," Peloton's CEO and co-founder John Foley said in a statement. "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. We are incredibly excited to meet and welcome the Troy Township community into the Peloton family fold."
The facility is expected to sit on more than 200 acres, and will be equipped with more than 1 million square feet of space for amenities, offices and more. The company said it will incorporate renewable materials during the process and will feature some of the latest industrial technology.
The plant could add more than 2,000 jobs to the area with positions in corporate, manufacturing, assembly and quality assurance functions. Peloton plans to work with the Ohio Development Services Agency and the Regional Growth Partnership to ensure much of the positions go to nearby residents.
Ohio Gov. Mike DeWine praised the announcement, along with other lawmakers.
"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," Ohio Governor Mike DeWine said in a statement. "Ohio is excited to partner with Peloton's forward-looking leadership team in developing a new, state-of-the-art facility using connective technology, and creating 2,174 new manufacturing jobs in Wood County."
"Ohio is excited to partner with Peloton's forward-looking leadership team in developing a new, state-of-the-art facility," DeWine wrote in part on Twitter.
DeWine said the facility is expected to create $138 million in new annual payroll.
"I'm thrilled to see this investment in American manufacturing come to Ohio - we have the most productive workers in the world," the state's Democratic U.S. Sen. Sherrod Brown wrote on Twitter.
The facility will help speed up manufacturing and delivery — a challenge Peloton has run into recently, especially during the pandemic.
The company, which currently manufactures products at third-party facilities in Asia, has faced delivery delays, in part due to increased customer demand, leading to frustrations among consumers and investors alike.
Peloton has since announced an investment of over $100 million in February to speed up shipments by using ocean freight and air. The company also acquired fitness equipment manufacturer Precor for $420 million last year, which has plants in North Carolina and Washington at which Peloton hopes to manufacture its popular bikes and treadmills, according to CNBC.
The company also advertises its Ohio facility will have ample office space for employees, including a top-of-the-line fitness center, and will be open to the Troy Township and larger Midwest community, including hosting tours of the facility and opening an on-site showroom.