Thailand’s Board of Investment (BOI) has approved a $688 million investment by Nestlé (Thai) Co., Ltd. to construct a smart factory and distribution center in Samut Prakan province.

The factory will deploy artificial intelligence (AI) and advanced automation to position Thailand as the multinational’s strategic production and logistics hub for Southeast Asia, the BOI said in a statement on Thursday.

The greenfield facility, located in the Araya Industrial Estate, is scheduled to begin operations in the fourth quarter of 2028, with annual capacity of 170,000 metric tons of NESCAFÉ soluble coffee, coffee mixes, and ready-to-drink beverages.

The project can create over 520 jobs for Thai engineers and technical specialists, integrating AI-driven systems and robotic automation to maximize operational efficiency and minimize environmental impact.

Nestlé will source $130 million worth of local agricultural inputs and raw materials annually, including coffee beans, sugar, and fresh milk. The company will also invest in upstream agricultural development by researching climate-resilient coffee varieties, distributing high-quality saplings, and training local farmers in sustainable cultivation practices.

Narit Therdsteerasukdi, Secretary General of the BOI, said the investment will support growing domestic and regional demand while linking directly with Thailand’s domestic supply chain. It can boost the potential of the Thai coffee industry and strengthen the country’s position as a key food and beverage hub in the region.

Nikhil Chand, Chairman and CEO of Nestlé Indochina, said Thailand has been an important market for Nestlé for more than 130 years. The investment reflects confidence in the country and a commitment to contributing positively to Thai society, the economy, local communities, and the environment, the executive added.

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