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Nestlé to establish AI-powered coffee production hub in Thailand with USD 688 million investment

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Nestlé to establish AI-powered coffee production hub in Thailand with USD 688 million investment
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Thailand's Board of Investment has approved Nestlé's USD 688 million investment to build an AI-enabled coffee manufacturing and distribution facility. The project is expected to expand regional production capacity, strengthen local agricultural supply chains, and reinforce Thailand's position as a Southeast Asian food and beverage manufacturing hub.

THAILAND Thailand's Board of Investment (BOI) has approved a USD 688 million investment by Nestlé (Thai) Co. Ltd. to develop a new smart manufacturing plant and distribution center in Samut Prakan province, according to an official announcement. The greenfield facility will integrate artificial intelligence and advanced automation technologies to produce soluble coffee, coffee mixes and ready-to-drink beverages, with commercial operations targeted for the fourth quarter of 2028.

The facility is designed with an annual production capacity of 170,000 metric tons and is expected to generate more than 520 skilled jobs, primarily for engineers and technical professionals. The BOI said the investment will strengthen Thailand's manufacturing ecosystem while supporting rising domestic and regional demand across Southeast Asia.

The project also deepens linkages with Thailand's agricultural sector through annual procurement of approximately USD 130 million in locally sourced raw materials. This is expected to benefit coffee growers, agricultural suppliers and food processing businesses while encouraging technology adoption across the value chain.

For businesses and investors, the investment signals continued confidence in Thailand as a regional production and logistics base for advanced food manufacturing. Nestlé is the world's largest food and beverage company, operating across more than 180 countries with a portfolio spanning coffee, nutrition, dairy and packaged foods. Thailand's Board of Investment is the country's principal investment promotion agency responsible for attracting strategic domestic and foreign investment.

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