Rheem Hot Water Tanks

About Rheem

Rheem Manufacturing Company is a privately held manufacturer that produces residential and commercial heating, cooling, water heating, pool and spa heating, and commercial refrigeration products. The company is headquartered in Atlanta, Georgia, and operates as an independent subsidiary of Paloma Industries, a Japanese company based in Nagoya, Japan.



Rheem was founded by brothers Richard and Donald Rheem, with financial assistance from a third brother, William Rheem, and initially manufactured steel drums in 1925 in partnership with Pacific Galvanizing Company. The company was formally organized on January 22, 1930, when it bought out Pacific Galvanizing and also acquired the Republic Steel package company, which had an existing plant and manufactured boilers and tanks. This acquisition allowed Rheem to enter the water heating business.

Through the 1930s, Rheem began manufacturing water heaters in earnest, and by 1936 had achieved coast-to-coast distribution. By 1941, Rheem had become the largest manufacturer of automatic water heaters in the United States. During World War II, much of the company's production shifted to wartime efforts, including the manufacturing of shell casings, a liberty ship, and aircraft parts.

The postwar decades brought a series of landmark innovations. In 1954, Rheem introduced glass-lining, a process that bonded porcelain to the interior surface of a water heater tank, dramatically extending tank life and setting a new industry standard. In 1956, Rheem introduced the "Rheemaire" central air conditioning and heating system for homes, which eventually became one of the company's primary business areas.

In 1959, Rheem acquired Ruud Manufacturing Company, a pioneer in the water heating industry with a well-regarded product line and a distribution network throughout North America. Ruud had been founded by Edwin Ruud, a Norwegian immigrant who developed the first automatic storage tank gas-fired water heater, which went into production in 1889. The Ruud brand remains one of Rheem's most recognized names to this day.

In 1985, Rheem acquired Raypak, a leading producer of copper tube boilers used for swimming pool heating, commercial hot water supply, and hydronic heating. In 1983, Rheem introduced the Richmond Water Heaters brand, positioned to sell through hardware stores and home improvement centers, and in 1988, Pace Industries, the parent company of Rheem, was purchased by Paloma Ltd.

In 2009, Rheem and Ruud became the first to sell a Hybrid Heat Pump Water Heater, a product that was more than twice as efficient as comparable electric water heaters. Today, Rheem is the only manufacturer in the world that produces heating, cooling, water heating, pool and spa heating, and commercial refrigeration products, with an international presence spanning 14 countries and premium brands including Rheem, Raypak, Ruud, Eemax, Richmond, and Splendid.