Rheem air conditioners are made by Rheem Manufacturing Company, an American manufacturer headquartered in Atlanta, Georgia, that celebrated its 100th anniversary in 2025.
Rheem is a mid to upper tier HVAC brand known for reliable, energy-efficient systems and is the same company that builds Ruud, Raypak, and Richmond branded products.
Rheem Manufacturing is owned by Paloma Industries, a privately held Japanese manufacturer of gas appliances headquartered in Nagoya, Japan, which acquired Rheem in 1988.
Knowing that Rheem is a century-old American manufacturer with a strong domestic production base helps explain its consistent reliability ratings and broad dealer support across North America.
This article covers who makes Rheem air conditioners, where they are produced, who owns the brand, its history, how it compares to a rival, and whether the systems are any good.
So let’s get started.
Table of Contents
Who Makes Rheem Air Conditioners?
Rheem air conditioners are made by Rheem Manufacturing Company, which both designs and builds its own HVAC systems.
Rheem is a genuine manufacturer with its own production facilities, producing air conditioners, heat pumps, furnaces, air handlers, and water heaters under the Rheem and Ruud brand names.
The company’s HVAC lineup covers residential and light commercial systems from basic entry-level units up to high-efficiency variable-speed systems with smart home integration.
Rheem Manufacturing manages nearly 50 brands worldwide through its global family of companies, with Rheem and Ruud as the flagship HVAC lines in North America.
In March 2025, Rheem was named to Newsweek’s list of the Most Trustworthy Companies in America, as confirmed in Rheem’s company history.
Where Are Rheem Air Conditioners Made?
Rheem air conditioners are made primarily in the United States, with the largest HVAC production facility located in Fort Smith, Arkansas.
The Fort Smith plant is the primary assembly hub for Rheem and Ruud residential and light commercial air conditioning systems for the North American market.
Rheem also operates manufacturing and water heating facilities in Montgomery, Alabama, along with additional plants across the United States and internationally.
The company’s July 2023 Fort Smith facility sustainability report highlighted active efforts to reduce energy consumption and minimize waste at its primary production site.
Who Owns Rheem Air Conditioners?
Rheem is owned by Paloma Industries, a privately held Japanese company headquartered in Nagoya that specializes in gas appliances.
Paloma acquired Rheem Manufacturing in 1988, providing the American company with the financial backing and global reach of a major international manufacturer.
Despite the Japanese ownership, Rheem has continued to operate independently from its Atlanta headquarters and has maintained its American manufacturing emphasis throughout the Paloma era.
Additional context on Rheem’s global brand family and ownership structure is available on Rheem’s official about page.
What Is the History of Rheem?
Rheem Manufacturing Company was established in the mid-1920s when brothers Richard and Donald Rheem acquired a galvanizing plant in San Francisco, California.
The company began manufacturing water heaters in the 1930s and by 1936 had coast-to-coast distribution, establishing the Rheem name as a trusted household brand.
Rheem expanded into space heating and air conditioning in the 1940s and 1950s, and acquired Ruud Manufacturing Company in 1959 to strengthen its water heating and HVAC business.
The company celebrated its 100th anniversary in 2025, marking a century of American manufacturing leadership in both HVAC and water heating.
Rheem Air Conditioners vs Carrier Air Conditioners: How Do They Compare?
Rheem and Carrier are both major American HVAC manufacturers competing in the mid to upper tier residential market.
Carrier is generally priced about 5% higher than Rheem for comparable models and has a broader range of premium tier options including its industry-leading Infinity Series.
Rheem offers a strong balance of reliability and value, with systems that are widely available, easy to service, and backed by a broad dealer network across North America.
For most homeowners, both are excellent choices, and the deciding factor is often the quality and pricing of the local installing contractor rather than the brand itself.
Are Rheem Air Conditioners Any Good?
Rheem air conditioners are consistently ranked among the most reliable residential HVAC systems available in the United States.
Consumer Reports previously ranked Rheem and its Ruud brand as having the fewest percentage of units requiring repair among all major HVAC brands in an independent survey.
The brand is also recognized for energy efficiency, with top-tier systems achieving SEER2 ratings well above the federal minimum and ENERGY STAR certification on select models.
Warranties run 5 to 10 years on registered products, with the scroll compressor covered for the full 10 years on most qualifying models.
For homeowners who want a proven, well-supported, American-made HVAC system at a fair price, Rheem is one of the most consistent and well-regarded choices in the market.
For more on the Rheem brand family, see Where Are Rheem Water Heaters Made and Who Makes American Standard Air Conditioners.
Frequently Asked Questions About Rheem Air Conditioners
Who makes Rheem air conditioners?
Rheem air conditioners are made by Rheem Manufacturing Company, headquartered in Atlanta, Georgia. Rheem is owned by Paloma Industries of Japan and celebrated its 100th anniversary in 2025.
Are Rheem and Ruud the same?
Yes, Rheem and Ruud are made in the same factories with identical components and designs. They differ primarily in their distribution channels and branding, not in product quality or performance.
Where are Rheem air conditioners made?
Rheem air conditioners are made primarily at the company’s large manufacturing facility in Fort Smith, Arkansas. Additional production takes place at other Rheem facilities in the United States.
Are Rheem air conditioners reliable?
Yes, Rheem is consistently rated as one of the most reliable HVAC brands in the United States. Consumer Reports has recognized Rheem and Ruud for having the fewest repair rates among major HVAC brands.
I am Jack Neel, a mechanical engineer, researcher, and writer. I created this website to share my knowledge about different brands and products with you. I research the manufacturers behind the brands and provide you with the information you need to make smart buying decisions.