AAON Expands Production to Meet Rising HVAC Demand

AAON Embarks on Major Expansion Plans

AAON, Inc. (NASDAQ: AAON), a leader in the HVAC industry, has recently revealed its intent to expand its production capabilities with the acquisition of a new 787,000 square foot facility. This strategic move aims to cater to the increasing demand in the data center market while simultaneously creating 828 skilled jobs over the coming five years. The expansion represents a crucial effort to diversify AAON's manufacturing capabilities and ensure reliability for its customers.

A Focus on Thermal Management Solutions

The newly acquired facility will focus on manufacturing a variety of thermal management equipment under the BASX brand. This includes pivotal systems designed for data centers such as air-cooled units, computer room air handlers (CRAHs), various liquid cooling distribution units, and direct evaporative cooling solutions. With limited production expected to begin in early 2025, AAON plans to ensure the facility is fully operational within about twelve months.

Leadership's Vision for Growth

Gary Fields, CEO of AAON, expressed optimism regarding the new facility, stating, "This acquisition marks an exciting chapter for AAON. It allows us to adapt to the dynamically evolving data center market and reinforces our commitment to our customers. We're excited to also contribute positively to the local economy and create new job opportunities."

Investing in Community and Economy

Matt Tobolski, the President and COO of AAON, emphasized the comprehensive planning and rigorous due diligence that went into this acquisition. By ensuring they meet the demands of the growing data center customers, he believes this facility will not only be beneficial for AAON but will also yield significant returns for shareholders.

Collaboration with Local Leaders

AAON's commitment to fostering local relationships is evident in their appreciation for key partners such as the local government and economic development organizations. These collaborative efforts will help strengthen connections with industry leaders to enhance recruitment for the new facility.

Path Towards Sustainable Growth

Paul Young, Mayor of Memphis, expressed that welcoming AAON signifies a major advancement for the local market. The partnership embodies a mutual commitment to boosting economic performance and job creation.

Looking Forward to Future Success

Recognizing Memphis as a burgeoning hub for high-tech industries, Ted Townsend of the Greater Memphis Chamber highlighted the city’s agility in attracting businesses. These developments indicate that Memphis is evolving into the Digital Delta, a dynamic region for job creation and industrial advancement.

Commitment to Innovative Solutions

Dr. Joann Massey, President and CEO of EDGE, noted that AAON's presence will further solidify Memphis’s role in the manufacturing sector. The emphasis on innovation and job creation will enhance the city's development into a robust industrial partner.

Learn More About AAON

Founded in 1988, AAON stands as an industry leader in HVAC solutions. With a focus on high performance and energy efficiency, AAON is dedicated to providing a unique ownership experience through innovative engineering and design. Learn more about their offerings at AAON.com.

Frequently Asked Questions

What is AAON's primary focus in their new facility?

AAON's new facility will focus on producing thermal management equipment for data centers under the BASX brand.

How many jobs will the new facility create?

The expansion is projected to create 828 skilled jobs over the next five years.

What is the projected timeline for the facility's operation?

Production is expected to start in early 2025, with full operations anticipated within about 12 months.

How does AAON plan to support the local economy?

AAON aims to collaborate with local organizations to facilitate job creation and enhance economic performance.

Where is AAON headquartered?

AAON is headquartered in Tulsa, Oklahoma, where it also operates its innovation center and testing laboratory.

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