Nestlé invests US$697.6M in new coffee factory in Thailand

THAILAND – Nestlé has announced plans to invest SFr563 million (US$697.6 million) in a new coffee manufacturing facility in Thailand, marking a major expansion of its Nescafé production capacity following the end of its long-standing local manufacturing joint venture. 

The new factory will be built in Samut Prakan province and is scheduled to begin operations in the second half of 2028. It will produce a wide range of Nescafé products, including soluble coffee, ready-to-drink beverages, and coffee blends, while also housing a distribution centre to serve Thailand and neighbouring Southeast Asian markets. 

The investment follows the conclusion of Nestlé’s manufacturing partnership with Quality Coffee Products (QCP), which produced Nescafé products in Thailand between 1990 and 2024.  

The agreement expired in December 2024, with the separation leading to legal proceedings that were ultimately resolved in Nestlé’s favour earlier this year. 

Since 2025, Nestlé has continued supplying the Thai market by installing production lines in its existing factories, partnering with local contract manufacturers, and temporarily importing products to ensure uninterrupted availability. 

The company said the new factory will be equipped with advanced manufacturing technologies and artificial intelligence-enabled systems designed to improve operational efficiency and production capabilities. 

Commenting on the investment, Remy Ejel, Executive Vice President and Chief Executive Officer of Nestlé’s Asia, Oceania and Africa division, said: “This new state-of-the-art factory will increase our Nescafé production capacity in Southeast Asia and contribute to the long-term growth of our coffee business in one of the world’s most dynamic coffee markets.” 

Nestlé described Thailand as a dynamic coffee market valued at approximately SFr1 billion and noted that it has maintained operations in the country for more than 130 years. According to its 2025 annual report, the company currently operates seven manufacturing facilities in Thailand. 

The new investment is expected to create more than 500 jobs while strengthening Nestlé’s regional coffee production network. 

The Thailand project follows a series of coffee-related investments announced over the past year. These include a €15 million expansion at its Girona facility in Spain, a VND1.9 trillion (US$73 million) investment to expand coffee production in Vietnam’s Dong Nai province, and a £28 million investment at its Dalston factory in the United Kingdom to support the Nescafé Frothy Coffee range. 

Nestlé reported that its soluble coffee and coffee systems business generated SFr17.17 billion in sales during 2025, underscoring the strategic importance of coffee within its global portfolio. 

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