Nestle Breaks Ground on New THB 23 Billion Coffee Manufacturing Facility in Thailand, One of Nestle's Most Advanced Coffee Factories Worldwide Creating Local Jobs and Sourcing THB 4.3 Billion Worth of Local Ingredients Annually
Nestle today held a groundbreaking ceremony for the "House of NESCAFE Thailand," its new coffee factory at the Araya Industrial Estate in Samut Prakan province, marking the official start of construction for the THB 23 billion investment. The new facility will become one of Nestle's most advanced coffee production sites worldwide, featuring proprietary coffee production technologies, AI-driven systems, robotics, and automated solutions. It will also include an advanced on-site distribution center for Nestle's multi-category products, as well as a Coffee Innovation Center. The new manufacturing facility will create more than 500 jobs and source local ingredients and raw materials worth approximately THB 4.3 billion annually from Thai farmers and suppliers.
The ceremony was attended by Mr. Varawut Silpa-archa, Minister of Industry and Vice Chairman of the Thailand Board of Investment; Mr. Fabrice Filliez, Ambassador of Switzerland to Thailand; Mr. Narit Therdsteerasukdi, Secretary General of the Thailand Board of Investment; Dr. Sumet Tangprasert, Governor of Industrial Estate Authority of Thailand; Mr. Remy Ejel, Executive Vice President and CEO of Nestle's Zone Asia, Oceania and Africa; Professor Dr. Surakiart Sathirathai, Chairman of Nestle South-East Asia Advisory Committee; Mr. Nikhil Chand, Chairman and CEO of Nestle Indochina; and Mr. Lim Hua Tiong, Chief Executive Officer, Thailand and Emerging Markets, Asia, Frasers Property Limited.
The state-of-the-art facility will produce a wide range of NESCAFE products, including soluble coffee, coffee mixes, and ready-to-drink coffee beverages. This diverse portfolio of high-quality, affordable, and innovative coffee offerings will strengthen Nestle's ability to serve consumers across different coffee occasions, whether at home, on the go, or out of home.
Mr. Remy Ejel, Executive Vice President and CEO of Nestle's Zone Asia, Oceania and Africa (AOA), said: "Coffee is Nestle's biggest business globally, and NESCAFE is one of the world's most iconic coffee brands. Thailand is one of our largest and most dynamic coffee markets, where NESCAFE is the No. 1 coffee brand. This investment will strengthen our ability to meet growing consumer demand, expand our production capacity in South-East Asia and support the sustainable, long-term growth of our coffee business. It reflects our confidence in Thailand's future and reinforces our long - term commitment to the country, its coffee sector and the communities we serve."
Mr. Varawut Silpa-archa, Minister of Industry and Vice Chairman of the Thailand Board of Investment, said "Nestle new coffee factory is a powerful demonstration of what can be achieved when a world-class enterprise meets a government determined to turn opportunity into action. To demonstrate Thailand readiness to welcome investment, facilitate business and move forward with speed and determination demanded by modern global economy. Allow me to reaffirm one fundamental commitment. The Royal Thai Government will stand firmly alongside responsible investors like Nestle, investors who bring advanced technology, who develop our people, investors who respect our environment and above all, investors who build not only factories but futures."
Integrating proprietary coffee technology, AI and robotics across the value chain
The facility will be equipped with Nestle's latest proprietary coffee extraction and aroma recovery technologies, enabling the company to deliver a high-quality, fresh and rich coffee experience for consumers.
The on-site distribution center will connect production, automated storage, order picking and dispatch in real time. Its Automated Storage and Retrieval System will accommodate more than 100,000 pallets in its warehouses. The new facility will deploy the latest automation and AI-driven systems to seamlessly connect the entire operation, helping to enhance quality, efficiency and sustainability.
Sustainability is at the heart of the facility, with an ambition to reduce carbon emissions through the use of 100% renewable energy, biomass fuel, heat recovery and several other technologies. In addition, the site is designed to achieve zero waste to landfill and will incorporate a water recycling system.
The new site also includes a "Coffee Innovation Center" that aims to develop high-quality ingredients, inspire new recipes and drive product innovation, helping to advance Thailand's coffee industry.
Creating over 500 jobs and supporting Thai coffee farmers and suppliers
The facility will create more than 500 jobs, including opportunities for technology specialists and other mid- and highly skilled positions. Employees will have opportunities to develop future-ready skills and capabilities in advanced technologies. Nestle will also continue to support Thai farmers and suppliers by sourcing local ingredients and raw materials, including coffee beans, sugar and fresh milk, worth approximately THB 4.3 billion annually.
Nestle has been a major buyer of Thai Robusta coffee beans for more than 40 years, supporting farmers through knowledge-sharing, the distribution of high-quality coffee plantlets, and the expansion of coffee cultivation to several regions of Thailand.
Mr. Nikhil Chand, Chairman and Chief Executive Officer of Nestle Indochina, said: "The site where we stand today will soon become one of Nestle's most advanced coffee factories in the world. We are proud that this project will create long-term value for the Thai economy and society. Beyond producing high-quality products for Thai consumers, the facility will create local jobs and support local farmers and suppliers who will supply ingredients and raw materials to the factory. I would like to express our sincere appreciation to the Thai government, the Thailand Board of Investment, all relevant authorities and our business partners for their strong support as we bring this new facility to life and, together, build a stronger future for Thailand's coffee industry."
Construction of the House of NESCAFE Thailand begins now, with the facility expected to begin operations in the latter part of 2028. This major step for Nestle is not simply about breaking ground on a new factory, but about laying the foundation for the next chapter of mutual growth in Thailand.