Thailand approves US$688mil Nestle factory, distribution hub

BANGKOK: Thailand approved a 23 billion baht (US$688 million) investment by Nestle Thai Co. to build a smart factory and distribution centre, strengthening the country’s push to become a regional hub for food and beverage manufacturing.

The greenfield project, approved by the Board of Investment on Wednesday, will be located in central Samut Prakan province. The facility is scheduled to begin operations in the fourth quarter of 2028 and will have an annual production capacity of 170,000 tonnes of Nescafe soluble coffee, coffee mixes and ready-to-drink beverages, according to a BOI statement Thursday.

The investment underscores Thailand’s efforts to attract technology-driven manufacturing and high-value food industry as global companies diversify supply chains in Southeast Asia. Nestle has operated in the Southeast Asian country for more than 130 years, the company said in a statement.

The plant will use artificial intelligence, robotic automation and advanced manufacturing systems for efficiency and to reduce its environmental footprint, Nestle said. It expects to create more than 520 jobs for Thai engineers and technical specialists.

“This investment strengthens the entire coffee value chain, from farming and processing to logistics and export,” BOI secretary-general Narit Therdsteerasukdi said.

Nestle plans to source about 4.3 billion baht of local agricultural inputs and raw materials annually, including coffee beans, sugar and fresh milk. The company will also support upstream development via research into climate-resilient coffee varieties, distribution of high-quality saplings and farmer training in sustainable cultivation.