Business News: Peloton to set up its first US plant after supply problems.
Peloton Interactive, Inc. (Nasdaq: PTON) today announced plans to build its first factory in the United States. After a rigorous selection process, Peloton chose 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 the production of the award-winning Peloton Bike, Bike + and Peloton Tread starting in 2023.
Peloton plans to lead the way to the site later this summer. During the multi-year development, Peloton will commit approximately $ 400 million to the facility.
The company saw long delivery delays as a global increase in shipping traffic. It was forced to invest more than $ 100 million (£ 70.6 million) in aviation and to speed up shipping to remedy the situation.
It also acquired Precor, a large manufacturer of exercise equipment for gyms and hotels with facilities in North Carolina and Washington, to help keep up with orders.
Foley said in a statement Monday, “As we continue to invest in our Asian manufacturing footprint and existing US facilities through our Precor. sites, the new Peloton Output Park gives us tremendous strategic leverage to ensure we have capacity, quality and economies of scale in our bike and tread product lines. “