Nestlé to spend $688 M on AI-powered smart factory in Samut Prakan, Thailand

Nestlé (Thai) Co., Ltd.’s $688 million investment to build a smart manufacturing and distribution center in Samut Prakan province has been approved by Thailand’s Board of Investment (BOI).

According to a statement released by the BOI on Thursday, the facility would use modern automation and artificial intelligence (AI) to establish Thailand as the multinational’s strategic production and logistics base for Southeast Asia.

With an annual capacity of 170,000 metric tons of NESCAFÉ soluble coffee, coffee mixes, and ready-to-drink drinks, the greenfield facility in the Araya Industrial Estate is expected to start operations in the fourth quarter of 2028.

By combining robotic automation and AI-driven technologies to optimize operational effectiveness and reduce environmental impact, the project has the potential to generate over 520 employments for Thai engineers and technical specialists.

Every year, Nestlé will purchase $130 million worth of local agricultural inputs and raw commodities, such as sugar, fresh milk, and coffee beans. By investigating climate-resilient coffee kinds, supplying premium saplings, and instructing regional farmers in sustainable farming methods, the corporation will also make investments in upstream agricultural development.

The investment would support rising domestic and regional demand while directly connecting with Thailand’s domestic supply chain, according to BOI Secretary General Narit Therdsteerasukdi. It can increase the potential of Thailand’s coffee sector and solidify the nation’s standing as a major regional center for food and drink.

Thailand has been a significant market for Nestlé for more than 130 years, according to Nikhil Chand, Chairman and CEO of Nestlé Indochina. According to the executive, the investment shows faith in the nation and a dedication to making a beneficial impact on Thai society, the economy, local communities, and the environment.