Thailand clears Nestlé smart factory project

Thailand’s Board of Investment has approved a 23 billion baht (US$688 million) investment plan by Nestlé (Thai) Co. for a new smart factory and distribution centre in central Samut Prakan province. The project is structured as a greenfield development, adding new industrial capacity rather than expanding an existing site. This decision aligns Nestlé’s future production footprint in Thailand with the country’s investment promotion framework for advanced manufacturing.

The facility is scheduled to begin operations in the fourth quarter of 2028. By setting a specific start-up timeframe, the company and authorities have defined a medium-term horizon for construction, commissioning and workforce preparation. The project underscores Nestlé’s continued presence in Thailand, where the company says it has operated for more than 130 years.

The Samut Prakan plant is designed with an annual production capacity of 170,000 tonnes. It will focus on Nescafé soluble coffee, coffee mixes and ready-to-drink beverages, reinforcing Thailand’s role in supplying coffee and beverage products. This scale is intended to support both domestic demand and regional distribution through the associated logistics centre.

Nestlé plans to incorporate artificial intelligence, robotic automation and advanced manufacturing systems throughout the new facility. These technologies are aimed at improving efficiency and consistency in production processes. The use of such systems also positions the plant as a technology-intensive operation within Thailand’s food and beverage sector.

The project is expected to create more than 520 jobs for Thai engineers and technical specialists. These roles reflect the advanced manufacturing focus of the plant and the need for skilled personnel to operate and maintain automated and digital systems. The employment effect sits alongside broader supply chain activity linked to the new site.

Nestlé plans to source about 4.3 billion baht of local agricultural inputs and raw materials annually for the project. Key inputs will include coffee beans, sugar and fresh milk. This level of annual procurement is set to deepen the company’s engagement with domestic agricultural producers and related industries, tying the smart factory’s operations to local supply networks.

By combining a smart factory with a distribution centre, the Samut Prakan investment strengthens Thailand’s position as a manufacturing and logistics base for food and beverage products. The use of AI and robotic automation links the project to national efforts to attract technology-driven, high-value investment. Within Nestlé’s portfolio in Thailand, the new site adds a large, specialised hub focused on coffee and beverage lines under the Nescafé brand.