Nestlé Invests Over CHF 560 Million to Expand Nescafé Production in Thailand
Nestlé has announced a major investment of CHF 563 million to establish a new Nescafé production facility in Thailand, strengthening the company’s position in one of Asia’s most important coffee markets. The new state-of-the-art factory will support rising consumer demand, expand coffee production capacity across Southeast Asia and reinforce Nestlé’s long-term commitment to Thailand’s coffee industry.
Thailand represents a strategically important market for Nestlé’s coffee business, with the country’s coffee sector valued at approximately CHF 1 billion. As coffee continues to grow in popularity among Thai consumers, the investment will enable Nestlé to enhance supply capabilities, improve operational flexibility and deliver locally relevant products under its globally recognized Nescafé brand.
The new facility will be developed in Samut Prakan province and will include an advanced on-site distribution center designed to improve supply chain efficiency. By integrating production and distribution operations in one location, Nestlé aims to reduce delivery times, optimize inventory management and respond more quickly to changing market needs.
“Coffee is Nestlé’s largest business globally, and Thailand is one of our biggest coffee markets,” said Remy Ejel, Executive Vice President and CEO of Nestlé’s Zone Asia, Oceania and Africa (AOA). “By investing in Nescafé, one of our most iconic global brands, we are strengthening our ability to meet growing consumer demand and ensuring local brand relevance to deliver consistent, volume-led growth.”
He added that the new factory will play an important role in expanding Nescafé production capabilities in Southeast Asia while contributing to the continued growth of Nestlé’s global coffee business.
The facility will manufacture a broad portfolio of Nescafé products, including soluble coffee, coffee mixes and ready-to-drink coffee beverages. Designed to serve both domestic and regional markets, the factory will increase Nestlé’s ability to provide consumers with a wide range of coffee experiences while maintaining the quality and consistency associated with the Nescafé brand.
Once operational, the factory is expected to create more than 500 jobs, supporting employment opportunities and economic development in the surrounding communities. The facility will also strengthen Nestlé’s partnerships with local farmers and suppliers by utilizing locally sourced ingredients and raw materials valued at more than CHF 100 million annually.
Operations at the new site are expected to begin in the latter part of 2028. The project is anticipated to deliver significant economic benefits while helping build a stronger and more resilient coffee supply chain in Thailand.
A key focus of the investment is the integration of advanced technology, automation and artificial intelligence-enabled systems to improve manufacturing performance, product quality and sustainability. The factory will incorporate Nestlé’s latest innovations in coffee production, including next-generation extraction and aroma recovery technology.
This advanced technology is designed to capture and preserve the natural aromas released during coffee roasting, helping maintain the rich flavor profile and freshness consumers expect from Nescafé products. The facility will also utilize robotics and automated systems across production, packaging, transportation and inventory management processes, improving efficiency while supporting consistent product standards.
Sustainability will be a central component of the new factory’s operations. The investment aligns with Nestlé’s broader environmental goals, including efforts to improve resource efficiency, reduce waste and support more sustainable food production practices. Through the use of smart technologies and optimized processes, the facility will contribute to more efficient manufacturing and a lower environmental footprint.
The project has received investment support from Thailand’s Board of Investment, reflecting its alignment with the country’s Bio-Circular-Green (BCG) economy strategy. Thailand’s BCG model focuses on sustainable economic development by promoting innovation, responsible resource use and environmentally friendly industries.
Nestlé has maintained a presence in Thailand for more than 130 years and has established itself as a major contributor to the country’s food and beverage sector. The company is also one of the largest buyers of locally grown Robusta coffee, creating opportunities for Thai coffee farmers and strengthening domestic agricultural value chains.
The new Nescafé factory builds on more than four decades of Nestlé’s support for Thailand’s coffee farming communities. Through initiatives focused on providing coffee plantlets, promoting regenerative agriculture and improving climate resilience, Nestlé has worked with farmers to enhance coffee quality, increase productivity and protect natural resources.
These programs are designed to help farmers adapt to changing climate conditions while improving livelihoods through more sustainable coffee-growing practices. By combining investment in manufacturing with long-term agricultural support, Nestlé aims to create shared value across the entire coffee ecosystem.
The CHF 563 million investment highlights Nestlé’s confidence in Thailand’s growth potential and the continued expansion of coffee consumption across Southeast Asia. With increased production capacity, advanced manufacturing capabilities and stronger partnerships with local suppliers and farmers, the new Nescafé facility will serve as a cornerstone of Nestlé’s future coffee strategy in the region.
Source Link:https://www.nestle.com/
