Nestlé secures approval for $688m Thailand smart factory investment

It will integrate artificial intelligence and advanced robotic automation t

Nestlé (Thai) Co., Ltd. has secured approval from Thailand's Board of Investment (BOI) for a $688m (23 billion baht) investment to build a smart factory and distribution center in Samut Prakan province.

Approved on 8 July, the greenfield project will establish an AI-powered manufacturing facility at Araya Industrial Estate, which will serve as Nestlé's production and logistics hub for Southeast Asia.

The factory is scheduled to begin operations in the fourth quarter of 2028 with an annual production capacity of 170,000 metric tons of NESCAFÉ soluble coffee, coffee mixes, and ready-to-drink beverages.

The project is expected to create more than 520 jobs for Thai engineers and technical specialists.

The facility will integrate artificial intelligence and advanced robotic automation to improve production efficiency and reduce its environmental footprint, supporting Thailand's Bio-Circular-Green (BCG) economic policy.

Nestlé said the new plant will source a wide range of ingredients locally, including coffee beans, sugar and fresh milk. The company expects to procure about $130m (4.3 billion baht) worth of Thai agricultural products and raw materials annually.

In addition to expanding production, Nestlé plans to invest in Thailand's coffee sector by researching climate-resilient coffee varieties, distributing high-quality seedlings and training farmers in sustainable cultivation practices.

"This investment reflects our confidence in the country and our commitment to contributing positively to Thai society, the economy, local communities, and the environment," said Nikhil Chand, chairman and chief executive officer of Nestlé Indochina.

According to the BOI, the investment supports Thailand's strategy to attract high-value manufacturing projects and strengthen the country's position as a regional food and beverage production hub.

"This investment strengthens the entire coffee value chain, from farming and processing to logistics and export. And it builds a stronger, more resource-efficient foundation for Thailand's food and beverage industry."," said Narit Therdsteerasukdi, secretary general of the Thailand Board of Investment.