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Nestle has announced an investment of CHF 563 million to construct a new Nescafe manufacturing facility in Thailand. The project represents a capital commitment to one of the region's coffee markets, which is currently valued at approximately CHF 1 billion.

The new facility is scheduled to begin operations in the latter part of 2028. It is designed to address rising consumer demand for coffee products in Thailand and support broader export opportunities across the region.

Logistics and Production Infrastructure

The manufacturing plant will be located in the Samut Prakan province. To streamline operations, the development features an advanced, on-site distribution centre designed to enable shorter delivery times, improve inventory management, and increase business agility.

The facility will manufacture a full range of Nescafe products, including:

☕ Soluble Coffee

🥛 Coffee Mixes

🥤 Ready-to-Drink Coffee Beverages

Technological Integration

To improve quality, efficiency, and sustainable operations, Nestle plans to integrate advanced technology, automation, and artificial intelligence (AI) systems into the plant's workflows.

Key technical specifications of the Samut Prakan facility include:

• Next-Generation Extraction: Implementation of Nestle's latest coffee extraction and aroma recovery technology, designed to preserve the rich aromas released from roasted coffee to deliver a fresher coffee experience.

• Automated Logistics: System-wide use of robotics and automated systems to streamline packing, product transport, and warehouse inventory management.

• Sustainable and Regulatory Alignment: Design principles aligned with Thailand's goal to promote a Bio-Circular Green economy framework. The project has secured formal investment support from Thailand's Board of Investment.

Economic and Agricultural Impact

Upon commencing operations, the new factory is expected to employ more than 500 people, providing an economic boost to local communities. Nestle has also committed to supporting Thai agricultural suppliers by purchasing local ingredients and raw materials valued at more than CHF 100 million annually.

Nestle has operated in Thailand for more than 130 years and remains a major industrial buyer of locally grown Robusta coffee. The new manufacturing footprint builds on more than 40 years of agricultural support initiatives in the country. Through these programmes, the company has supplied coffee plantlets and promoted regenerative agriculture and climate resilience to improve farmer livelihoods, strengthen coffee quality, and protect the local environment.

Corporate Perspective

Remy Ejel, Executive Vice President and Chief Executive Officer of Nestle's Zone Asia, Oceania and Africa, stated that coffee remains the company's largest global business segment, with Thailand serving as one of its biggest coffee markets.

Ejel noted that investing in Nescafe strengthens the company's ability to meet growing consumer demand and ensure local brand relevance to deliver consistent, volume-led growth. He added that the new factory will increase Nescafe production capacity in Southeast Asia and contribute to the long-term growth of the coffee business.