Bangkok Today
Thailand’s BOI Approves $688 Million Nestlé Investment for AI-Driven Regional Coffee Hub
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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.
Key facts
- 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.
- 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
- Nestlé will source USD 130 million (4.3 billion baht) worth of local agricultural inputs and raw materials each year.
- Note: Currency conversions are based on the Bank of Thailand’s average selling rate of approximately 1 USD = 33.3 THB.
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Summary
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.
“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.”