Thailand Approves $688 Million Investment by Nestle for Smart Factory, Distribution Center
(Bloomberg) — Thailand greenlit nine investment projects worth a combined 66.3 billion baht ($2 billion), anchored by a plan from Nestle Thai Co. to build a smart factory, as it seeks to attract higher-value manufacturing and technology supply chains.
The Nestle 23-billion-baht greenfield project, approved by the Board of Investment on Wednesday, will be located in central Samut Prakan province. The facility is scheduled to begin operations in the fourth quarter of 2028 and will have an annual production capacity of 170,000 metric tons of Nescafe soluble coffee, coffee mixes and ready-to-drink beverages, according to a BOI statement Thursday.
The investments strengthen Thailand’s push to become a regional hub for food and beverage manufacturing, while signaling momentum in sectors including artificial intelligence, advanced electronics, aviation and clean energy. Global manufacturers are increasingly repositioning supply chains across Southeast Asia as they seek more resilient production bases.
Beyond Nestle, the new projects include a 7.8 billion baht investment by the local unit of Japan’s Datasection Inc. for high-performance GPU server infrastructure in Bangkok and Pathum Thani, as well as other advanced electronics projects by Doosan Electro-Materials Co., Taiwan Union Technology Co. and Fulltech Fiber Glass Corp.
Thai Airways International Pcl also received approval for aircraft leasing projects worth 14.3 billion baht, while Lomrak Green Energy Co. will invest 5.6 billion baht in wind power projects in Lopburi, also in central Thailand.
Nestle’s plant will use AI, automation and advanced manufacturing systems to improve efficiency and reduce its environmental footprint, the company said. The project is expected to create more than 520 jobs for Thai engineers and technical specialists.
“This investment strengthens the entire coffee value chain, from farming and processing to logistics and export,” BOI Secretary General Narit Therdsteerasukdi said.
Nestle, which has operated in Thailand for more than 130 years, plans to source about 4.3 billion baht of local agricultural inputs and raw materials annually, including coffee beans, sugar and fresh milk. The company will also support upstream development through research into climate-resilient coffee varieties, distribution of high-quality saplings and farmer training in sustainable cultivation.
The agency also said it has expanded the mandate of a specialized energy panel to screen data center projects, part of efforts to manage power demand, environmental impact and clean energy sourcing as more digital infrastructure investors enter Thailand.
(Updates with other approved projects from 1st paragraph.)
©2026 Bloomberg L.P.
