# Thailand’s Board of Investment approves $688 million Nestlé investment to create an AI-powered regional coffee hub

- Link: https://www.thailand-business-news.com/companies/319301-thailands-board-of-investment-approves-688-million-nestle-investment-to-create-an-ai-powered-regional-coffee-hub
- Published: 2026-07-10T11:39:00+07:00
- Author: Daniel Lorenzzo

* Thailand’s Board of Investment approved a USD 688 million investment by Nestlé(
   Thai) Co., Ltd. to build a smart factory and distribution center in Samut Prakan
   province. The facility will produce 170,000 metric tons annually of NESCAFÉ coffee
   and related beverages, beginning operations in late 2028, and is expected to 
   create over 520 jobs.
 * The project will incorporate AI and robotic automation while sourcing USD 130
   million in local agricultural inputs each year. Nestlé will also support upstream
   farming through research into climate-resilient coffee varieties and training
   for local growers, reinforcing Thailand’s role as a regional food and beverage
   production hub.

The Thailand Board of Investment (BOI) approved on 8 July 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 accelerating momentum in attracting high-tech,
high-value food and beverage manufacturing as global corporations seek resilient,
technology-driven supply chains in Southeast Asia.

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“This greenfield investment will support growing domestic and regional market demand
while linking directly with our domestic supply chain,” said **Mr. Narit Therdsteerasukdi,
Secretary General of the Thailand Board of Investment. **“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.”

The new automated facility, located in the Araya Industrial Estate in Samut Prakan
province, is scheduled to start operations in the fourth quarter of 2028 with 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.

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By integrating AI-driven systems and robotic automation, the facility aims to maximize
operational efficiency and minimize its environmental footprint. This directly supports
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, with more than half the market share.

“Thailand has been an important market for Nestlé for more than 130 years,” said**
Mr. 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 deep 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,” Mr. 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.”