Nestlé unveils 23-billion-baht Nescafé production hub in Thailand
Nestlé has announced plans to invest 23 billion baht in a new Nescafé factory in Thailand after terminating its joint-venture agreement with Quality Coffee Products Co Ltd (QCP), the company that previously manufactured Nescafé products in the country
- Nestlé is investing 23 billion baht to build a new Nescafé factory in Samut Prakan, Thailand, after terminating its joint-venture agreement with the previous manufacturer.
- The new facility will use advanced technology, AI, and robotics to produce Nescafé products for both domestic and export markets, with operations expected to start in late 2028.
- The project is anticipated to create over 520 jobs and will source approximately 4.3 billion baht in local raw materials, such as coffee beans and sugar, annually.
Nestlé has announced plans to invest 23 billion baht in a new Nescafé factory in Thailand after terminating its joint-venture agreement with Quality Coffee Products Co Ltd (QCP), the company that previously manufactured Nescafé products in the country.
QCP was a 50:50 joint venture between Nestlé and the Mahagitsiri family. The partnership ended on December 31, 2024, leaving QCP without the right to continue producing Nescafé products.
Nikhil Chand, chairman and chief executive officer of Nestlé Indochina, said the new factory would be built in Samut Prakan province. The facility is intended to strengthen Nestlé’s Nescafé business in Thailand and support exports.
Advanced technology and AI to improve production
The factory will manufacture several core Nescafé products, including soluble coffee, coffee mixes and ready-to-drink canned coffee.
It will be equipped with advanced manufacturing technology and artificial intelligence to raise quality standards, improve efficiency and support environmentally sustainable operations.
The project will also include a modern distribution centre capable of handling a wide range of Nestlé products. The entire development is expected to create more than 520 jobs in Thailand, including positions for technology specialists and workers with intermediate and advanced skills.
“This investment project comprises a high-technology coffee manufacturing facility and a distribution centre capable of handling a wide range of Nestlé products,” Chand said.
“The latest technologies and artificial intelligence will be installed to produce high-quality products and improve operational efficiency for the benefit of consumers and customers.
“The new Nescafé factory will make extensive use of innovation, raw materials and materials sourced domestically, including coffee beans, sugar and raw milk supplied by Thai farmers, supporting the agricultural sector and local economic development.”
Local sourcing worth 4.3 billion baht a year
The value of raw materials and other materials sourced in Thailand for use at the new factory is expected to reach approximately 4.3 billion baht a year.
The project has received investment-promotion support from the Board of Investment and is aligned with Thailand’s Bio-Circular-Green Economy goals.
The new factory is expected to begin operations in the latter part of 2028.
It will be equipped with Nestlé’s most advanced coffee-extraction technology, modern aroma-preservation systems and advanced automation.
The systems will include robotics and an automated storage and retrieval system, or ASRS, for storing and selecting products.
Artificial intelligence and advanced process-control systems will also be used to improve efficiency, quality and consistency throughout every stage of production.
More than 27.8 billion baht invested over eight years
The latest investment reflects Nestlé’s continued commitment to creating benefits for Thailand.
Between 2018 and 2025, the company invested more than 27.8 billion baht in the country to expand manufacturing capacity across key product categories, including beverages and pet food.
Nestlé has also been a major buyer of Thai Robusta coffee beans for more than four decades.
The company continues to support domestic farmers by sharing agricultural knowledge and distributing high-quality coffee seedlings developed by Nestlé’s coffee research centre.
It has also promoted the expansion of coffee-growing areas into different regions of the country to meet rising consumption and narrow the gap between domestic coffee production and demand from the industrial sector.
Most recently, Nestlé supported the expansion of Robusta coffee cultivation into Mae Sot district in Tak province.
Nescafé’s long-standing presence in Thailand
Nescafé is a leading international coffee brand established by Nestlé in 1938.
The brand was introduced in Thailand in 1973 and has since become the country’s number-one coffee brand.
The construction of the new factory marks another important step in Nestlé’s commitment to delivering high-quality products to consumers while contributing to Thailand’s long-term economic and social development.
