1920s-1930s at Deer Hollow Farm at
Rancho San Antonio Open Space Preserve in California Rheem is named after its founders, brothers Richard "R. S." Rheem and Donald "D. L." Rheem. A third brother, William "W.K." Rheem, helped finance the company at its start. The brothers began manufacturing galvanized steel drums in 1925 as a co-partnership with Pacific Galvanizing Company in
Emeryville, California. The Rheem Manufacturing Company was organized on January 22, 1930, buying out Pacific Galvanizing. Rheem additionally acquired the Republic Steel package company, which also had a plant in Richmond. In 1941, Rheem became the largest manufacturer of automatic water heaters in the United States. In 1954, Rheem introduced "
glass-lining," which coated the interior of a water heater tank with porcelain to extend the life of the tank. 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. 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. Rheem was also the 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.
2008-2018 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, while in the residential gas furnace market as of 2008, the company was also ranked fifth with a 12% market share. 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.
2019-present In 2019, Rheem Manufacturing announced sustainability goals for its manufacturing processes, products, and plants it wanted to achieve by its 100th anniversary in 2025. In 2022, the company received two GOOD DESIGN Awards. In August of that year, the company was named an Eco-Leader by Green Builder Media for the fifth year in a row. In 2023, the company won awards from the IoT Breakthrough Awards and Good Design. In April of that year, the company won a silver and bronze medal at the internationally recognized 2023 Edison Awards. Then in August 2023, Rheem was recognized as an eco-leader for the sixth consecutive year by Green Builder magazine. In 2024, Rheem released its sixth annual sustainability report. The report detailed Rheem’s progress toward reducing GHG emission rates and moving its manufacturing sites to a Zero Waste to Landfill status. In July of that year, Rheem's Fort Smith facility highlighted its sustainability initiatives, which include reducing energy consumption and minimizing waste. In September at the Sustainability Innovation Awards, Rheem was awarded the
Sustainable Heating, Ventilation, and Air Conditioning (HVAC) Product of the Year for Rheem Manufacturing Middle East for their ducted inverter air-conditioning units. In October, the company established a regional headquarters in Saudi Arabia and opened its 27th Innovation Learning Center (ILC) in the country. Through the ILCs, Rheem offers hands-on training to meet regional sustainability needs. This was part of a hurricane relief initiative. As part of the celebration, Rheem partnered with Habitat for Humanity to build a home for a military veteran in Atlanta. In February, Rheem was included as one of Forbes America’s Best Large Employers. In March 2025, Rheem was included on Newsweek’s list of the Most Trustworthy Companies in America.
Acquisitions 1960 • Ruud Manufacturing Company
1969 • National Heater Company
1985 • Raypak
2002 • Southcorp Holdings
2005 • Solahart
2013 • Heat Transfer Products Group (HTPG): producer of the Russell, Witt, ColdZone, and Kramer commercial refrigeration brands
2014 • CEM SA (based in Chile)
2017 • Grupo Industrial Saltillo’s (GIS) water heating business
2019 • Intergas, a manufacturer of high-efficiency gas boilers and water heaters (acquired through Paloma Rheem Global Inc.)
2021 • Friedrich Air Conditioning
2022 • DEJONG, an independent manufacturer and supplier of stainless steel hot water tanks headquartered in the Netherlands
2024 • Rheem acquired Nortek Global HVAC ==Brands and products ==