Phenix City Company expanding to Auburn, will employ 160

Alabama Gov. Kay Ivey on announced ILJIN, a leading automotive and industrial bearings and chassis manufacturer, is investing nearly $100 million in a new operation in Auburn.

“ILJIN first partnered with the state of Alabama 15 years ago when it opened its first North American wheel bearing facility in Phenix City,” said Secretary of the Alabama Department of Commerce Ellen McNair. “This is yet another success story that shows Alabama has all the ingredients for manufacturing companies to thrive in our great state.”

The Phenix City facility, located at 14 Downing Drive inside the Phenix Industrial Park off U.S. Highway 431, has expanded twice since opening in 2010, investing $15.8 in its 2016 expansion alone.

The facility makes wheel bearings for Hyundai, Kia, General Motors and Ford.

The South Korea-based company’s new facility will employ about 160 people and will allow ILJIN to expand into the aluminum forging market. It will be located in an existing building in Auburn Technology Park North, allowing for production to begin quickly.

“ILJIN’s decision to locate its next facility in Auburn is great news for Alabama,” Ivey said. “Alabama is already the fifth largest vehicle producer in the U.S., and it’s wonderful to see how we are continuing to expand and deepen our automotive supplier base, creating lasting jobs throughout Alabama.”

ILJIN supplies control arms, stabilizer links, ball joints and other components to major auto manufacturers.

While many of ILJIN’s competitors in the automotive industry have made investments outside of the U.S., ILJIN Chairman DS Lee said the company has benefitted from keeping its production in the Southeast.

“We have found the U.S., and in particular the state of Alabama, to be the most productive, the most competitive and the highest yielding of all our recent investments,” Lee said.

Having been in the Phenix City area for 15 years hundreds of people have been employed by the company. In fact, according to reviews about the company as recently at July 23, 2024 on Indeed, current and former employees say the employees work 12-hour shifts, six and seven days a week with little time off and little opportunity for growth.

Still, according to Indeed, the company received a 3.2/5 rating, with forty of the 95 reviews giving the company four or five stars, with the highest score by category for compensation and benefits, followed by job security, culture, and work-life balance.

ILJIN has long used steel forging in its manufacturing processes. The new Auburn facility will expand the company’s capabilities, allowing it to begin producing forged aluminum control arms for several U.S. customers.

This transition to aluminum will produce stronger and lighter components that result in safer, more reliable and more fuel-efficient vehicles.

“By combining our in-house forging capabilities with world-class technology, we’ll be able to produce the highest quality and lowest cost aluminum forgings for our customers,” said John Dix, president of ILJIN USA.

ILJIN is setting up its new Auburn facility to further increase the U.S.-made content of the company’s products made for the North American market. The raw forgings will be sent to ILJIN’s Greer, South Carolina, facility for final processing.

“Auburn has proven itself to be the ideal location of our company’s expansion here in America,” said ILJIN SC President Dongsoo Um. “Thanks to the City of Auburn’s help, we were able to meet the tight deadlines for this project and will be able to provide our customers with the products they need.”

Founded in 1973, ILJIN is a global manufacturer of bearings and chassis components serving rail, automotive and industrial markets. Its focus on highest quality and lowest cost has made ILJIN as the world’s largest GEN3 wheel bearing maker.