Rheem is expanding in Fort Smith with plans to invest $20 million in new construction and infrastructure, a move that will eventually create 100 jobs, the company said Monday.
The expansion includes additional production capacity, as well as the construction of an Innovation Learning Center, a place to train Rheem distributors and contractors.
The company said the project is part of its 10-year strategy that calls for investments in growth and innovation. It currently employs 970 workers, both salaried and hourly. The new jobs will be production and office personnel.
"This expansion demonstrates our committed partnership with the state and rewards the Fort Smith community -- enabling our continued growth and leadership," Andrew Welch, director of operations, Rheem air-conditioning division, said in a statement.
A spokesman for the Arkansas Economic Development Commission said the new project qualified for two state subsidies, the Tax Back and the Advantage Arkansas programs.
In response to emailed questions, Welch said construction has already begun on the expansion and will take several years to fully complete.
Welch said the Innovation Learning center, one of nine located around the world, is expected open in the spring. It will be approximately 10,000 square feet. The new employees will be hired to fill roles over the next few years.
The plan also calls for improvements at the plant, including a new entrance and improved traffic flow.
Last month, Owns Corning said it would invest nearly $25 million and bring 50 new jobs to Fort Smith. In September 2021, Mars Petcare said it will invest $120 million at its plant in the city, adding 140 new full-time jobs. That news came after the company said it would invest $145 adding two production lines. The projects are expected to be completed in 2023. In January 2021, Jonesboro-based Hytrol Conveyor Co. said it will invest $20 million in a new facility in Fort Smith expected to add 250 jobs over five years, and in September the company said it wants to add 100 more jobs at the site.
Rheem has had operations in Fort Smith since the summer of 1970. Today, the 66-acre Fort Smith campus serves as the company's U.S. headquarters and makes air-conditioning units and other HVAC equipment.
Preliminary unemployment data for the Fort Smith Metropolitan Statistical Area for September showed an unemployment rate of 3.6%, up from 3.1% for the same period a year ago. The statistical area includes Crawford and Sebastian counties in Arkansas and LeFlore and Sequoyah counties in Oklahoma.
Rheem was founded in 1925 and makes HVAC equipment; water heaters; commercial and residential boilers; and commercial refrigeration products. It has more than 40 brands across the globe. Its parent company, Paloma, is based in Japan.