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Rheem Manufacturing Company

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Rheem Manufacturing Company
Company typePrivate
IndustryPlumbing, heating, and cooling
FoundedRheem - Richmond, California, (1925; 99 years ago (1925))
Ruud - Pittsburgh, Pennsylvania (1897; 127 years ago (1897))
FounderRichard Rheem, Donald Rheem
Edwin Ruud
HeadquartersAtlanta, Georgia, United States
Area served
North and South America, Australasia, Middle East
Key people
  • Chris Peel (CEO)
  • JR Jones (Executive Chairman of the Board)
ProductsWater heaters, air conditioners, Household furnaces
Revenue
  • Increase US$6 Billion (2022)
OwnerPaloma Industries
Number of employees
13,000[1]
DivisionsRheem, Rheem Water, Rheem Air, Ruud, Raypak Inc, Prostock, Eemax, Inc., Intergas, HTPG, Friedrich Air Conditioning, De Jong, Richmond
Websitewww.rheem.com

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.[2][3]

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,[4] Brazil, Canada, Iraq, Kuwait, Mexico,[5] New Zealand, Perú, Oman, Qatar, Saudi Arabia, Singapore, UAE, and Ukraine.

History

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Early History

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Rheem Bennett Displacement Meter at Deer Hollow Farm at Rancho San Antonio Open Space Preserve in California

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.[6][7][8][9]

The brothers began manufacturing galvanized steel drums in 1925 as a co-partnership with Pacific Galvanizing Company in Emeryville, California.[6][10][11][7] A third brother, William "W.K." Rheem, helped finance the company at its start.[10][7] 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.[10] 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.[12] In 1941, the company became the largest manufacturer of automatic water heaters in the United States.[10]

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.[6] 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.[13]

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.[10] 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.[10][14]

In 1968[15] 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.[citation needed]

Beginning in August 1970, Rheem began producing Heat pumps and HVAC units for residential applications based in Fort Smith, Arkansas.[10][11] In 1983, Rheem introduced the Richmond Water Heaters brand, positioned to sell at hardware stores and home improvement centers.[10]

In 1984, Rheem was acquired by Pace Industries, Inc.[10] The company discontinued containers in 1985, ending 60 years making steel drums and other containers.[10] In 1987, it was reported that MLX Corporation would acquire Rheem for a reported $825 million.[16] In 1988 Rheem was acquired by Paloma Industries, Ltd., a privately held Japanese company with headquarters in Nagoya, Japan, which wished to expand globally.[10][11][17]

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.[10][18] 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.[19]

Recent History

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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.[20] 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.[21]

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.[22] 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%).[23]

History of Ruud

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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.[24] 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.[25] 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.[26]

Products

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In December 2013, Rheem acquired Scottsboro, Alabama-based Heat Transfer Products Group (HTPG). At that time, Rheem had a business presence in 13 countries, and was distributing its products to 75 countries.[27] HTPG, a standalone company, produces the Russell, Witt, ColdZone and Kramer commercial refrigeration brands.[11]

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.[citation needed]

In Australia, Solarhart, which trades in solar hot water, solar power, and battery storage systems, is owned by Rheem Australia.[28] 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.[citation needed]

Swimming pool-related products include gas-fired and heat pump heaters sold under the Rheem and Raypak brands.[citation needed] Protech replacement parts for HVAC systems are sold through the PROSTOCK retail program.[citation needed]

Former divisions

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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.[29][30][31] Rheem and Ruud also sold re-branded Briggs & Stratton residential Emergency power systems beginning in 2007.[32]

Plant and office locations

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All currently operating facilities are ISO 9001 certified.[33]

Country Location Date Opened Current Products Serial Number Plant Code[34]
United States Atlanta, Georgia
33°56′03″N 84°21′08″W / 33.93426°N 84.35228°W / 33.93426; -84.35228		 2006 Headquarters[35]
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[36]
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
Lewisville, Texas
33°01′06″N 96°58′07″W / 33.01842°N 96.96862°W / 33.01842; -96.96862		 Distribution Center
Montgomery, Alabama
32°24′50″N 86°13′47″W / 32.41376°N 86.22967°W / 32.41376; -86.22967		 1971 Water Heaters A
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
Randleman, North Carolina
35°49′29″N 79°50′04″W / 35.82483°N 79.83447°W / 35.82483; -79.83447		 2004 Distribution Center[37]
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[38]
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[39] N, Q
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
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

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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
Eagan, Minnesota
44°50′38″N 93°11′11″W / 44.8438°N 93.1864°W / 44.8438; -93.1864		 2013 Electric Water Heaters[40] W
Greenville, Alabama
31°50′39″N 86°37′30″W / 31.84418°N 86.62501°W / 31.84418; -86.62501		 1999 Air Conditioning[41] G
Kalamazoo, Michigan 1971 Gas Furnaces K
Milledgeville, Georgia
33°06′15″N 83°15′24″W / 33.1042°N 83.2568°W / 33.1042; -83.2568		 2008 Air Conditioning[42] M
New York, New York
(Chrysler Building)		 2006 Headquarters[43]
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
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[44]
Canada Hamilton, Ontario
43°15′59″N 79°52′18″W / 43.26625°N 79.87159°W / 43.26625; -79.87159		 2006 Water Heaters[45] 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[46]

NASCAR

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The Rheem-sponsored car of Kevin Harvick in 2013

Since 2007,[47] 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.[47][48] 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.[48][49][50][51] They formerly sponsored James Buescher in the Xfinity Series and Truck Series.[48][52] Brandon Jones, the son of former Rheem CEO J.R. Jones, currently competes in the Xfinity Series.[48]

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 assosicate sponsor to the No. 18. It was announced In September 2019 that Rheem would sponsor Christopher Bell for an unknown number of races in the No. 95 Leavine Family Racing Toyota Camry in the Cup Series in 2020.[53]

References

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  1. ^ "Rheem to move 250 jobs to Mexico (Updated) | Business, Political, and Cultural News in Fort Smith and Northwest Arkansas". Thecitywire.com. Retrieved October 14, 2013.
  2. ^ "Paloma Tankless Water Heaters > Paloma USA > About Paloma". Palomatankless.com. Retrieved October 14, 2013.
  3. ^ Maraiz, Michael. "DC Advisory advised Paloma Rheem Manufacturing Company on the acquisition of Intergas".
  4. ^ "Rheem". Rheem Chile (in Spanish). Archived from the original on February 6, 2023. Retrieved July 3, 2020.
  5. ^ "Oradel | Rheem Latin America". oradel.com. August 18, 2018. Retrieved August 18, 2018.
  6. ^ a b c Rego, Nilda (May 9, 2010). "Days Gone By: Donald Rheem's grasp equaled his reach throughout Moraga and Orinda". East Bay Times, Digital First Media. Retrieved July 7, 2016.
  7. ^ a b c "Rheem Manufacturing Names Vice President" (PDF). The New York Times. June 28, 1955. Retrieved July 7, 2016.
  8. ^ Don Pitcher (June 12, 2012). Moon San Juan Islands. Avalon Travel Publishing. pp. 273–. ISBN 978-1-61238-057-5. Retrieved July 7, 2016.
  9. ^ Rego, Nilda (January 18, 2009). "Chevron Beginnings: W.S. Rheem". Contra Costa Times. Retrieved February 19, 2009.
  10. ^ a b c d e f g h i j k l "RHEEM MANUFACTURING COMPANY HISTORICAL TIME LINE" (PDF). ASHRAE.
  11. ^ a b c d Lovett, John (September 11, 2015). "Rheem Celebrates 45 Years In Fort Smith, Carries Out Changes". Southwest Times Record. Archived from the original on September 28, 2015. Retrieved July 7, 2016.
  12. ^ "Industry Housing Features". Housing Industry Association. June 2021.
  13. ^ "Former Rheem Manufacturing". The Danville News. April 17, 2013. pp. A4. Retrieved December 20, 2024.
  14. ^ "About Rheem Manufacturing Company". Rheem.com. Retrieved October 14, 2013.
  15. ^ "Nieuwe fabriek Rheem". January 11, 2016.
  16. ^ "COMPANY NEWS; Rheem to MLX For $825 Million". Archived from the original on November 6, 2017. Retrieved December 20, 2024.
  17. ^ "Paloma Corporate Brochure" (PDF). palomaglobal.com. Retrieved October 22, 2013.
  18. ^ "Rheem, Scroll Compressors, Copeland, Heat pumps, Air Conditioners". Hannabery.com. Retrieved October 14, 2013.
  19. ^ "Rheem to make G.E. water heaters". Supply House Times, BNP Media. June 18, 1999. Retrieved July 7, 2016.
  20. ^ "Rheem News Release: Heat Pump Water Heater – First to Market". Archived from the original on October 17, 2013. Retrieved April 26, 2013.
  21. ^ "Cooling your home", Consumer Reports Magazine, p. 42, July 2009
  22. ^ Biesen, Erin. "Rheem Air Conditioning; Turning a New Leaf", Appliance magazine, November 2005. Accessed March 16, 2013. "Rheem was not as strong or competitive as it had once been. In the mid-1980s, Rheem held a 16-percent market share and a complete product line. Its market share declined to 11 percent, with numerous product line gaps, by 2000."
  23. ^ Chapter 3. Market and Technology Assessment, United States Department of Energy. Accessed March 16, 2013.
  24. ^ "About Ruud Products". Ruud.com. Retrieved October 14, 2013.
  25. ^ The Heating and Ventilating Magazine - Google Boeken. 1914. Retrieved October 14, 2013.
  26. ^ "Pittsburgh Post-Gazette - Google News Archive Search". news.google.com.
  27. ^ "Dec. 5, 2013: Rheem Acquires Heat Transfer Products Group: One of Rheem's Immediate Goals Is to Reinvigorate the Brand". Air Conditioning, Heating and Refrigeration NEWS. Atlanta. December 5, 2013. Retrieved July 7, 2016.
  28. ^ "Solahart Terms and Conditions". Solahart. Retrieved March 25, 2024.
  29. ^ "Combo Organ Heaven: Rheem". Combo-organ.com. Retrieved October 14, 2013.
  30. ^ "Rheem-Califone "New Yorker" classroom record player • PhonoLand". Phonoland.com. Retrieved October 14, 2013.
  31. ^ "Califone AV series solid state 70-TF R-Player Rheem Manufact" (in German). Radiomuseum.org. Retrieved October 14, 2013.
  32. ^ "StackPath". March 2, 2007.
  33. ^ "About Rheem Manufacturing Company". Rheem.com. Retrieved October 14, 2013.
  34. ^ Building Intelligence Center. "Rheem® – How to determine the age or manufacture date | Building Intelligence Center". Buildingcenter.org. Retrieved October 14, 2013.
  35. ^ "Rheem moving HQ from N.Y. to Atlanta - Atlanta Business Chronicle". Bizjournals.com. August 14, 2006. Retrieved October 14, 2013.
  36. ^ "Rheem News - Rheem Opens Advanced Technology Integration Lab". Rheem.com. September 20, 2011. Archived from the original on October 16, 2013. Retrieved October 14, 2013.
  37. ^ [1][permanent dead link‍]
  38. ^ Kelly, Kate (June 30, 2009). "Rheem Canada Consolidates Business Units Under One Roof | Archive content from". Contracting Business. Retrieved October 14, 2013.
  39. ^ "Rheem continues with production shift to Mexico | Business, Political, and Cultural News in Fort Smith and Northwest Arkansas". Thecitywire.com. June 23, 2011. Retrieved October 14, 2013.[permanent dead link‍]
  40. ^ Welbesjwelbes, John (October 31, 2012). "Eagan water heater plant to shut down next year". TwinCities.com. Retrieved October 14, 2013.
  41. ^ Brown, Andy (April 30, 2013). "City transfers facility to IDB". The Greenville Advocate. Retrieved October 14, 2013.
  42. ^ Manley, Rodney (February 20, 2009). "Rheem shifts plans, will shut down Milledgeville plant | Business". Macon.com. Retrieved October 14, 2013.
  43. ^ "Rheem Pledges Support to the American Red Cross for Superstorm Sandy Relief Efforts". Prweb.com. Archived from the original on October 25, 2013. Retrieved October 14, 2013.
  44. ^ http://docs.newsbank.com.webproxy3.columbuslibrary.org/openurl?ctx_ver=z39.88-2004&rft_id=info:sid/iw.newsbank.com:AWNB:LANB&rft_val_format=info:ofi/fmt:kev:mtx:ctx&rft_dat=0EF80F48051ABD68&svc_dat=InfoWeb:aggregated5&req_dat=0D0CB5DC08821100 [bare URL]
  45. ^ "Hamilton's Rheem factory comes down". Thespec.com. Retrieved October 14, 2013.
  46. ^ "Rheem to move West Australian manufacturing to upgraded Sydney plant, 100 jobs to be made redundant". applianceretailer.com.au. June 20, 2014. Retrieved October 27, 2021.
  47. ^ a b Pennell, Jay (November 24, 2014). "Austin Dillon to run majority of Xfinity Series races with Rheem". Fox Sports. Retrieved July 7, 2016.
  48. ^ a b c d Wolkin, Joseph (May 19, 2016). "Brandon Jones Focused on RCR with High School in the Rear-view". Frontstretch. Retrieved July 7, 2016.
  49. ^ "Driver Season Stats". Racing-Reference.
  50. ^ "Rheem Motorsports | Kevin Harvick". Rheem-racing.com. Archived from the original on June 16, 2013. Retrieved October 14, 2013.
  51. ^ "Rheem Motorsports | Cale Gale". Rheem-racing.com. Archived from the original on October 15, 2013. Retrieved October 14, 2013.
  52. ^ "Rheem Manufacturing Company Announces Primary Sponsorship of James Buescher for 2014 NASCAR Nationwide Series Season". RAB Racing. January 9, 2014. Retrieved June 5, 2014.
  53. ^ "Christopher Bell joins Leavine Family Racing for 2020". Jayski's NASCAR Silly Season Site. September 24, 2019. Retrieved December 31, 2019.
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