AAON Announces Expansion Plans to Increase Production Capacity With New Facility In Memphis, Tennessee
TULSA, Okla., Nov. 14, 2024 /PRNewswire/ — AAON, Inc. (NASDAQ: AAON) (including its affiliates, “AAON” or the “Company”), a leader in high-performing, energy-efficient HVAC solutions that bring long-term value to customers and owners, is pleased to announce the expansion of the Company’s production capacity with the purchase of a new 787,000 square foot facility in Memphis, Tennessee. This facility will primarily facilitate the growing demand from the data center market and is projected to create 828 skilled jobs at this location over the next five years of operation. The expansion will also add geographic diversification to AAON’s current manufacturing footprint, mitigating certain operational risks and better serving our data center customers.
This facility will manufacture various types of thermal management equipment for data centers under the BASX brand, including air-cooled systems, computer room air handlers (CRAHs), direct evaporative coolers, and liquid cooling distribution units (CDUs), both liquid-to-liquid and liquid-to-air. The facility is expected to have limited production in early 2025 and be fully operational in approximately 12 months.
Gary Fields, AAON CEO, said :
The expansion of our production capacity through the purchase of this new facility marks a new chapter for AAON,
“Not only will this allow us to continue to capitalize on the rapidly growing data center market, it demonstrates the commitment we have to our data center customers and the confidence we have in the vertical strategy of this market. At the same time, we are thrilled to bring new jobs and investment to the Memphis community and look forward to seeing the positive impact it will have on both our company and the local economy.”
Matt Tobolski, AAON President, and COO, said :
After a rigorous due diligence process that included an intricate site search and detailed analysis of costs, risks, and return on investment, we are thrilled to announce the purchase of this new facility,
“This new capacity will ensure we are able to meet the growing demands from our data center customers, while also generating compelling returns on invested capital for our shareholders. To date, AAON has successfully supplied the highest performing, most efficient thermal management solutions to this end-market, and we look forward to continued success in the future.”
AAON leadership extends appreciation to the State of Tennessee, the City of Memphis, the Greater Memphis Chamber, and Memphis & Shelby County EDGE. These impressive organizations, with top-notch teams and competitive programs, were helpful in our decision and we look forward to collaborative partnerships.
City of Memphis Mayor Paul Young, said :
Building a robust recruitment pipeline requires strong relationships with both industry leaders and our economic development partners,
“Welcoming AAON to Memphis represents a significant step toward making our market even more competitive on a national level. With AAON’s commitment, we are enhancing our local economy and elevating Memphis as a destination for high-quality jobs and sustainable industry growth.”
Ted Townsend, President & CEO of the Greater Memphis Chamber, said :
Memphis is gaining recognition for its speed and agility in attracting businesses. Paired with our diverse workforce and manufacturing talent, Memphis is America’s newest high-tech hub—the Digital Delta,
“AAON embodies a new chapter for Memphis. As a dynamic, high job-creation company with a focus on data centers, we are proud to welcome them to the Digital Delta.”
Dr. Joann Massey, EDGE President, and CEO, said:
Memphis continues to prove itself as a vibrant hub for economic growth and opportunity,
“We are committed to welcoming innovative companies, like AAON, that invest in our community and support the creation of new jobs, further strengthening the city’s position as a key player in the manufacturing and industrial sectors.”
AAON was represented in their site selection and real estate negotiations by John Beach and Susan Arledge, SIOR with Newmark, a global real estate service provider to large global corporations and other occupiers of commercial real estate.
Through the dedication of our people, we push the industry forward with innovative air solutions and pave the way for a better tomorrow. Together, we’re making a difference. For Memphis job and career inquiries, email HelloMemphis@AAON.com.
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AAON Announces Expansion Plans to Increase Production Capacity With New Facility In Memphis, Tennessee, source
