© Reuters. FILE PHOTO: A Peloton exercise bike is seen following the ringing of the opening bell for the company’s IPO at the Nasdaq Market site in New York City, September 26, 2019. REUTERS / Shannon Stapleton / File Photo
(Reuters) – Home fitness equipment maker Peloton Interactive (NASDAQ 🙂 Inc announced Monday that it will build its first factory in Ohio and begin production in 2023.
Peloton has become a winner in the pandemic as home workouts have become popular during extended lockdowns caused by coronaviruses.
The factory will be the latest addition to the company’s growing global manufacturing network, which includes third-party partners in Asia and Peloton’s own facilities, the company said.
Peloton said it would spend around $ 400 million on the facility and create more than 2,000 jobs over the next few years.
“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,” said CEO John Foley.
The plant in Troy Township, Wood County will produce its flagship product Peloton Bike as well as the Bike + and Peloton Tread.
Shares of the exercise equipment maker slashed early declines 2.8% after the news broke and fell about 1% in afternoon trading.
Peloton’s stock has fallen 34% this year, as the company recalled its treadmills in May and planned to hit revenue for the current quarter after reporting multiple injuries and the death of a child in an accident.
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