The Thailand Board of Investment (BOI) approved on July 8 a USD 688 million (23 billion baht) investment by Nestlé (Thai) Co., Ltd. to construct a smart factory and distribution center. The greenfield project will deploy artificial intelligence and advanced automation, positioning Thailand as the multinational’s strategic production and logistics hub for Southeast Asia.
The approval highlights Thailand’s momentum in attracting high-tech food and beverage manufacturing as global corporations seek resilient, technology-driven supply chains in Southeast Asia.
“This greenfield investment will support growing domestic and regional market demand while linking directly with our domestic supply chain,” said Narit Therdsteerasukdi, Secretary General of the BOI. “By using local raw materials, helping our farmers and entrepreneurs, and sharing knowledge, this project will boost the potential of the Thai coffee industry and strengthen Thailand’s position as a key food and beverage hub in the region.”
Located in the Araya Industrial Estate in Samut Prakan province, the new automated facility is scheduled to start operations in the fourth quarter of 2028. It will have an annual capacity of 170,000 metric tons of NESCAFÉ soluble coffee, coffee mixes, and ready-to-drink beverages. The project is expected to create over 520 jobs for Thai engineers and technical specialists.
By integrating AI-driven systems and robotic automation, the facility aims to maximize operational efficiency and minimize its environmental footprint, directly supporting Thailand’s Bio-Circular-Green (BCG) economic agenda.
Nestlé, the world’s largest food and beverage company, counts Thailand among its longest-serving markets. Its NESCAFÉ brand has led the Thai coffee market for more than 50 years, holding more than half of the market share.
“Thailand has been an important market for Nestlé for more than 130 years,” said Nikhil Chand, Chairman and Chief Executive Officer of Nestlé Indochina. “This investment reflects our confidence in the country and our commitment to contributing positively to Thai society, the economy, local communities, and the environment. The new facility will use a wide range of locally sourced ingredients including coffee beans, sugar, and fresh milk, further supporting local agriculture and economic development.”
A key factor in the BOI’s approval is the project’s integration into the domestic economy. Nestlé will source USD 130 million (4.3 billion baht) worth of local agricultural inputs and raw materials each year.
In tandem with the manufacturing expansion, Nestlé will drive upstream agricultural development by researching climate-resilient coffee varieties, distributing high-quality saplings, and training local farmers in sustainable, high-yield cultivation practices.
“Nestlé’s choice to invest in coffee production here reflects the confidence global investors place in Thailand. It advances our strategy to become a world-leading food and beverage production base,” Narit said. “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.”
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