FORT SMITH, Ark. - The Heating & Cooling Division of Rheem Manufacturing Co. purchased a 37-acre commercial development site in Nuevo Laredo, in the state of Tamaulipas, Mexico. The Rheem Heating & Cooling and Water Heating Divisions currently have manufacturing operations in Nuevo Laredo.
According to the company, the land purchase provides it with
a strategic platform for continued global market expansion. This decision is
the latest in a series of strategic business investments designed to put Rheem
in the best position to increase market share and aggressively compete with
Rheem has been realigning and rationalizing manufacturing
plant utilization over the last 36 months to optimize competitiveness, including
completion of a manufacturing plant expansion in Milledgeville, Ga., and
reformatting its Fort Smith plant for improved manufacturing flexibility.
Rheem manufacturing plant rationalization is designed to
harmonize its facility operations to ensure that each plant is used most
effectively in achieving the company’s strategic growth plan.
The Heating & Cooling Division plans for construction of
a manufacturing facility on the Nuevo Laredo site that will join the Fort Smith
and Milledgeville plants in a harmonized system of manufacturing facilities
capable of supplying products in greater volumes to North American and world
In preparation for a new Nuevo Laredo manufacturing
facility, Rheem has contracted with a land-use architectural firm to conduct
feasibility studies and provide design assistance for the future plant.
Specifics related to plant size, construction timetable, estimated completion,
and occupancy, employment, and products to be manufactured in the future
facility are yet to be determined.
Rheem will announce future next steps as they are defined.
Rheem foresees gradual evolutionary change in normal operations as its plant
rationalization plan continues to unfold toward achieving lower cost operations
and increased global competitiveness.
For more information, visit www.rheem.com.
Rheem Purchases Land in Mexico
August 6, 2007