Rheem makes residential and commercial central air conditioners, furnaces, heat pumps and water heaters. Rheem is privately held and headquartered in Atlanta. It is a wholly owned subsidiary of Paloma Industries, which is part of the Paloma Group, a privately-held company headquartered in Nagoya, Japan.heem makes residential and commercial central air conditioners, furnaces, heat pumps and water heaters. Rheem is privately held and headquartered in Atlanta. It is a wholly owned subsidiary of Paloma Industries, which is part of the Paloma Group, a privately-held company headquartered in Nagoya, Japan.