# Rheem Manufacturing Company

Rheem Manufacturing Company is a privately held manufacturer who produces residential and commercial water heaters, boilers, heating, ventilating and air conditioning (HVAC) equipment. The company also produces and sells products under the Ruud brand name. Rheem is headquartered in Atlanta, Georgia, and is an independent subsidiary of Paloma Industries.
Rheem started in 1925 as a packaging supplier to the petroleum industry. The company also manufacturers of water heating and HVAC equipment in the United States. It also produces and markets products in Argentina, Armenia, Australia, Bahrain, China, Chile, Brazil, Canada, Iraq, Kuwait, Mexico, New Zealand, Perú, Oman, Qatar, Saudi Arabia, Singapore, UAE, and Ukraine.

## History
### Early History

The company is named after its founders, brothers Richard "R. S." Rheem and Donald "D. L." Rheem. They are the sons of William S. Rheem (1862–1919), former president of Standard Oil Company of California who led the construction of a major oil refinery for the company in Richmond, California.
The brothers began manufacturing galvanized steel drums in 1925 as a co-partnership with Pacific Galvanizing Company in Emeryville, California. A third brother, William "W.K." Rheem, helped finance the company at its start. The Rheem Manufacturing Company was organized on January 22, 1930, buying out Pacific Galvanizing. Rheem also acquired the Republic Steel package company, which also had a plant in Richmond. Republic Steel made boilers and tanks, which allowed Rheem to enter the water heating business. The company expanded overseas to Australia in 1936, building a plant in Sydney to make water heaters. In 1941, the company became the largest manufacturer of automatic water heaters in the United States.
During World War II, much of the company's efforts went towards wartime production, the manufacturing of shell casings, a liberty ship and aircraft parts. In 1942, Rheem Manufacturing took over a mill from Bethlehem Steel in Danville, Pennsylvania, to begin manufacturing munitions for World War II. The plant was sold to the American Steel Corporation of New York in 1946.
In 1954, Rheem introduced of "glass-lining," which coated the interior of a water heater tank with porcelain to extend the life of the tank. One of the most significant events came in 1956 with the introduction of "Rheemaire" central air conditioning and heating systems for homes. This eventually became one of the company's primary business areas.
In 1968 a plant was opened in Bergum (Burgum in Frisian) in the Netherlands. The plant was successful but had to close its doors by the end of 1983.
Beginning in August 1970, Rheem began producing Heat pumps and HVAC units for residential applications based in Fort Smith, Arkansas. In 1983, Rheem introduced the Richmond Water Heaters brand, positioned to sell at hardware stores and home improvement centers.
In 1984, Rheem was acquired by Pace Industries, Inc. The company discontinued containers in 1985, ending 60 years making steel drums and other containers.
In 1987, it was reported that MLX Corporation would acquire Rheem for a reported $825 million. That deal crashed, however, with the collapse of the stock market, and in 1988, Pace Industries, the parent company of Rheem, was purchased by Paloma Ltd., a privately held Japanese company with headquarters in Nagoya, Japan, which wished to expand globally.
Rheem was the first residential HVAC company to begin using scroll compressors throughout their lineup in 1994, and air conditioners and heat pumps continue to use Copeland Scroll Compressors. The company was also first to introduce a 14 SEER remote condensing unit in 1997. In 1998, the company began supplying the Home Depot with a line of GE branded water heaters.

### Recent History

J.R. Jones succeeded I.S. Farwell as company president and CEO in March 2008.
Rheem's market share of the central air conditioner market had been as high as 16% in the 1980s and dropped to about 11% by 2000. By 2008, a report by the United States Department of Energy ranked the firm as fifth in the US in the central air conditioner and heat pump market with a 12% market share (behind UTC/Carrier with 27%, both Goodman/Amana and American Standard/Trane with 14% and Lennox with 12%), while in the residential gas furnace market as of 2008, the company was also ranked fifth with a 12% market share (behind Carrier with 32%, Goodman with 15%, and both Lennox and Trane with 13%).
In 2009, Rheem and Ruud were the first to sell a Hybrid Heat Pump Water Heater, which was more than twice as efficient as similar electric water heaters. Also in the same year, Rheem and Ruud central air conditioners were reported to have the fewest percentage of units requiring repair among all major HVAC brands according to Consumer Reports.
Chris Peel was promoted to president and CEO in June 2018.
In July 2024, Rheem's Fort Smith facility highlighted its sustainability initiatives, which include reducing energy consumption and minimizing waste. These efforts are part of the company's commitment to environmental responsibility and efficiency in manufacturing practices.
In October 2024, the company established a regional headquarters in Saudi Arabia.

### Acquisitions

The Ruud Manufacturing Company was acquired by Rheem Manufacturing in 1960. Then the company purchased the St. Paul, Minnesota-based National Heater Company in 1969. In 1985, Rheem purchased Raypak.
Southcorp Holdings was purchased in January 2002, and in 2005, the company purchased Solahart.
Rheem purchased Heat Transfer Products Group (HTPG) from Monomoy Capital Partners in December 2013.
In September 2014, Rheem announced its acquisition of Chilean-based CEM SA. At the end of 2014, Rheem acquired Eemax Inc., a tankless water heater manufacturer.
In 2017, Rheem purchased Grupo Industrial Saltillo’s (GIS) water heating business.
In January 2022, DEJONG, an independent manufacturer and supplier of stainless steel hot water tanks headquartered in the Netherlands, was acquired from Nordian Capital.
In September 2024, Rheem acquired Nortek Global HVAC.

## Products

In December 2013, Rheem acquired Scottsboro, Alabama-based Heat Transfer Products Group (HTPG). HTPG, a standalone company, produces the Russell, Witt, ColdZone and Kramer commercial refrigeration brands.
In North America, Rheem and Ruud both manufacture and sell a full line of heating and cooling products for residential and commercial applications, including up to 98.7% annual fuel use efficiency gas furnaces, oil-fired furnaces, up to 20 SEER air conditioners, heat pumps, thermostats, air handlers, package units, and indoor air quality products such as media filters, UV lamps, and humidifiers.
In Australia, Solarhart, which trades in solar hot water, solar power, and battery storage systems, is owned by Rheem Australia. In many other countries around the world, the companies sell numerous types of water heating equipment, under the Rheem, Ruud, Richmond, Paloma, Splendid, and GE brands.
Swimming pool-related products include gas-fired and heat pump heaters sold under the Rheem and Raypak brands. Protech replacement parts for HVAC systems are sold through the PROSTOCK retail program.

### History of Ruud

Ruud was founded by Edwin Ruud (1854–1932), a Norwegian immigrant who lived in Pittsburgh, Pennsylvania. He developed the first automatic storage tank gas-fired water heater, which went into production in 1889. Ruud worked for George Westinghouse (1846–1914), but eventually bought the rights to produce the product he invented and formed his own company in 1897. In 1913, Ruud merged and absorbed the Humphrey Company of Kalamazoo, Michigan which also manufactured water heaters. The Humphrey Company had a large manufacturing operation in Kalamazoo, which Ruud continued to operate and expand. In 1954, Ruud moved all operations from Pittsburgh to Kalamazoo where they were headquartered until the purchase by Rheem in 1960.

## Former divisions

Rheem Califone manufactured audiovisual equipment under the Rheem, Califone, and Roberts brands. These were used in schools and institutions, and included public address systems, reel-to-reel audio tape recorders, phonographs, as well as Combo organs. Rheem and Ruud also sold re-branded Briggs & Stratton residential Emergency power systems beginning in 2007.

## Plant and office locations

All currently operating facilities are ISO 9001 certified.
| Country | Location | Date Opened | Current Products | Serial Number Plant Code |
| United States | Atlanta, Georgia 33°56′03″N 84°21′08″W﻿ / ﻿33.93426°N 84.35228°W﻿ / 33.93426; -84.35228 | 2006 | Headquarters | |
| United States | Fishers, Indiana 39°55′58″N 86°01′38″W﻿ / ﻿39.93275°N 86.02709°W﻿ / 39.93275; -86.02709 | 2008 | Advanced Technology Integration Laboratory | |
| United States | Fort Smith, Arkansas 35°19′30″N 94°23′20″W﻿ / ﻿35.32513°N 94.38899°W﻿ / 35.32513; -94.38899 | 1970 | Gas Furnaces, Air Conditioning | F |
| United States | Lewisville, Texas 33°01′06″N 96°58′07″W﻿ / ﻿33.01842°N 96.96862°W﻿ / 33.01842; -96.96862 | | Distribution Center | |
| United States | Montgomery, Alabama 32°24′50″N 86°13′47″W﻿ / ﻿32.41376°N 86.22967°W﻿ / 32.41376; -86.22967 | 1971 | Water Heaters | A |
| United States | Oxnard, California 34°12′00″N 119°09′01″W﻿ / ﻿34.20011°N 119.15019°W﻿ / 34.20011; -119.15019 | 2000 | Raypak Swimming Pool Heaters | |
| United States | Randleman, North Carolina 35°49′29″N 79°50′04″W﻿ / ﻿35.82483°N 79.83447°W﻿ / 35.82483; -79.83447 | 2004 | Distribution Center | |
| Canada | Brampton, Ontario 43°37′10″N 79°46′25″W﻿ / ﻿43.61935°N 79.77361°W﻿ / 43.61935; -79.77361 | 2009 | Headquarters of Rheem & Ruud Canada, Distribution Center | |
| Mexico | Nuevo Laredo, Tamaulipas 27°27′41″N 99°31′55″W﻿ / ﻿27.4614°N 99.532°W﻿ / 27.4614; -99.532 | 1990 | Air Conditioning, Heat Pumps, Evaporator Coils, and Water Heaters | N, Q |
| Mexico | Mexicali, Baja California 32°34′27″N 115°24′37″W﻿ / ﻿32.57417°N 115.41027°W﻿ / 32.57417; -115.41027 | 2001 | Water Heaters | M |
| Mexico | Nuevo Laredo, Tamaulipas 27°28′48″N 99°37′20″W﻿ / ﻿27.480120°N 99.622359°W﻿ / 27.480120; -99.622359 | 2007 | Manufacture of air conditioning and heating equipment | |
| Australia | Rydalmere, New South Wales 33°48′55″S 151°01′44″E﻿ / ﻿33.8154°S 151.02898°E﻿ / -33.8154; 151.02898 | | Water Heaters | |
| China | Sichuan 30°48′31″N 104°09′45″E﻿ / ﻿30.808636°N 104.162366°E﻿ / 30.808636; 104.162366 | 2010 | Water Heaters | |

### Former facilities

| Country | Location | Date Closed | Products | Serial Number Plant Code |
| United States | Chicago, Illinois 41°45′19″N 87°42′13″W﻿ / ﻿41.7553°N 87.7037°W﻿ / 41.7553; -87.7037 | 1990 | Gas Water Heaters | |
| United States | Eagan, Minnesota 44°50′38″N 93°11′11″W﻿ / ﻿44.8438°N 93.1864°W﻿ / 44.8438; -93.1864 | 2013 | Electric Water Heaters | W |
| United States | Greenville, Alabama 31°50′39″N 86°37′30″W﻿ / ﻿31.84418°N 86.62501°W﻿ / 31.84418; -86.62501 | 1999 | Air Conditioning | G |
| United States | Kalamazoo, Michigan | 1971 | Gas Furnaces | K |
| United States | Milledgeville, Georgia 33°06′15″N 83°15′24″W﻿ / ﻿33.1042°N 83.2568°W﻿ / 33.1042; -83.2568 | 2008 | Air Conditioning | M |
| United States | New York, New York (Chrysler Building) | 2006 | Headquarters | |
| United States | Pittsburgh, Pennsylvania 40°26′19″N 80°00′05″W﻿ / ﻿40.4385°N 80.0014°W﻿ / 40.4385; -80.0014 | 1954 | Ruud Headquarters, Gas Water Heaters | |
| United States | Westlake Village, California 34°08′46″N 118°47′53″W﻿ / ﻿34.1461°N 118.7980°W﻿ / 34.1461; -118.7980 | 2000 | Raypak Headquarters, Pool Heaters | |
| Canada | Hamilton, Ontario 43°15′59″N 79°52′18″W﻿ / ﻿43.26625°N 79.87159°W﻿ / 43.26625; -79.87159 | 2006 | Water Heaters | C |
| Australia | Perth, Western Australia 31°59′12″S 115°56′43″E﻿ / ﻿31.98653°S 115.94516°E﻿ / -31.98653; 115.94516 | 2015 | Water Heaters | |

## NASCAR

Since 2007, Rheem has sponsored Richard Childress Racing (RCR) in the NASCAR Sprint Cup Series and Xfinity Series through their Rheem, RUUD, and Richmond Water Heaters brands. They previously sponsored Kevin Harvick and Harvick's racing team Kevin Harvick Incorporated (KHI), along with Ron Hornaday Jr., Cale Gale and other former RCR & KHI drivers in the Cup, Xfinity, and Camping World Truck Series. They formerly sponsored James Buescher in the Xfinity Series and Truck Series. Brandon Jones, the son of former Rheem CEO J.R. Jones, currently competes in the Xfinity Series.
In 2018, Rheem moved to Joe Gibbs Racing with Ryan Preece & Christopher Bell driving the machine for 36 races. Rheem also was put on the rear quarter panel of the No. 18 Cup car driven by Kyle Busch as an associate sponsor to the No. 18. It was announced in September 2019 that Rheem would sponsor Christopher Bell for 23 races in the No. 95 Leavine Family Racing Toyota Camry in the Cup Series in 2020.