Rheem Grows Parts Business, Plans New Distribution Facility
The Replacement Parts business is unique and separate from the company's product manufacturing operations. However, it has occupied space as a tenant in the Air Conditioning Division's Fort Smith manufacturing facility for many years. In addition, in 2001, the company launched a network of dedicated parts retail stores (Prostock) for aggressive merchandising of parts to contractors. By year-end 2004, there will be over 105 Prostock stores in operation, the company says.
It's no surprise that the Replacement Parts business has outgrown its current Fort Smith warehouse space.
In addition to the transportation and proximity advantages of the new distribution center location, the facility will enable Rheem to consolidate its parts distribution operations into a single facility that has been specifically designed for parts distribution. Construction of an 180,000-plus-square-foot distribution center will commence upon completion of final design and planning details. The facility will be located on a 46-acre industrial park site. The new facility is expected to open in spring 2005.
The 39 Replacement Parts department employees currently working in the Fort Smith warehouse will be offered employment by Rheem, the company said.
Publication date: 06/21/2004