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Japan's Rinnai to produce water heaters in US

Manufacturer seeks to tap rising demand for tankless type

NAGOYA, Japan -- Rinnai will start producing gas-powered tankless water heaters in the U.S., aiming to meet rising American demand for the appliance.

The Japanese manufacturer said Friday that it initially will lease a plant in the state of Georgia and later build its own factory there. Investment will total about $79 million.

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