BOI backs Nestlé's 23B Baht coffee hub investment in Thailand

Khaosod•Economy•19d ago

Reader Briefing

Nestlé invests 23 billion baht in a new coffee production facility and distribution center in Samut Prakan, Thailand, aiming to establish the country as a regional coffee hub.

•Nestlé is investing 23 billion baht in a new coffee production facility and distribution center in Samut Prakan, Thailand.
•The investment aims to make Thailand a primary coffee production base for the region, covering instant coffee, 3-in-1 coffee, and canned coffee.
•The new facility will utilize advanced automation and AI, create over 520 jobs, and source significant raw materials from Thailand, valued at 4.3 billion baht annually.
•This move signifies Nestlé's confidence in Thailand's potential as a key food and beverage production hub in the region.

Overview

•Nestlé is investing 23,000 million baht in a new coffee factory and distribution center.
•Nestlé will construct a new coffee production facility in the Ariya Industrial Estate, Samut Prakan.
•Production at the new factory is expected to commence in late 2028 (2028).
•The investment stems from discussions between Thai Deputy Prime Minister Ekkanit and Nestlé's CEO for Asia, Oceania, and Africa at the World Economic Forum in Davos.
•The facility will create over 520 jobs for Thai personnel, particularly in engineering and specialized technology fields.
•Over 4,300 million baht worth of raw materials from Thailand, including coffee beans, sugar, and raw milk, will be utilized annually.
•The investment aims to elevate Thailand to a regional coffee production hub and enhance the Thai agricultural and food industries.
•Nestlé plans to develop the entire Thai coffee industry value chain, from farmer development to processing and logistics.

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Key Quotes

Nikhil Chand (Chairman and CEO, Nestlé Indochina)

"Thailand is an important market for Nestlé for over 130 years. This investment reflects our confidence in Thailand and reaffirms Nestlé's commitment to benefit Thai society, economy, communities, and the environment."

ประเทศไทยเป็นตลาดที่มีความสำคัญสำหรับเนสท์เล่มายาวนานกว่า 130 ปี การลงทุนนี้สะท้อนถึงความเชื่อมั่นของเราที่มีต่อประเทศไทย และตอกย้ำถึงความมุ่งมั่นของเนสท์เล่ในการสร้างประโยชน์ให้แก่สังคมไทย เศรษฐกิจ ชุมชน และสิ่งแวดล้อม

Key Entities

Organization

BOI (Board of Investment)(บีโอไอ)ℹ️

The Thai government agency responsible for promoting investment in Thailand, which approved Nestlé's investment.

Nestlé(เนสท์เล่)ℹ️

A global food and beverage giant investing significantly in Thailand to establish a regional coffee production hub.

NESCAFÉℹ️

A brand under Nestlé that will be produced at the new facility.

Place

Samut Prakan(สมุทรปราการ)ℹ️

The province in Thailand where Nestlé's new coffee factory and distribution center will be located.

Ariyan Industrial Estate(นิคมอุตสาหกรรมอารยะ)

The specific industrial estate in Samut Prakan where Nestlé's new facility will be built.

Davos(ดาวอส)ℹ️

The location in Switzerland where the World Economic Forum was held.

Person

Ekkanit(เอกนิติ)

Deputy Prime Minister of Thailand who was involved in discussions that led to Nestlé's investment.

Mr. Nikhil Chand(นายนิคิล ชัญจ์)

Chairman and CEO of Nestlé Indochina, who commented on the significance of the investment.