Nestlé allocates B23bn for new plant

Nestlé has announced a 23-billion-baht investment to build a new Nescafé manufacturing facility in Samut Prakan, Thailand. The announcement was made on 10 July 2026 and marks a significant commitment to the company's coffee operations in the country.

The new facility will focus on producing a broad range of Nescafé products, including pure soluble coffee, coffee mixes, and ready-to-drink formats. According to Nestlé, the project has received investment support from the Board of Investment, with operations expected to commence in the second half of 2028.

Nikhil Chand, chairman and chief executive of Nestlé Indochina, stated that the facility will include an advanced coffee manufacturing site and an on-site distribution centre. He also noted that the factory will use locally sourced ingredients and raw materials, including coffee beans, sugar, and fresh milk from Thai farmers. Nestlé estimates the annual value of these local ingredients and materials at 4.3 billion baht.

The project is expected to create more than 520 local jobs, including positions for technology specialists and mid-level to highly skilled employees. Nestlé stated that the new facility will strengthen its coffee business in Thailand and support export opportunities.

The investment follows the company's legal battles with the Mahagitsiri family over Nescafé operations in Thailand and related agreements, as noted in the article.

For context, between 2018 and 2025, Nestlé invested more than 27.8 billion baht in Thailand to expand manufacturing capabilities across product categories including ready-to-drink beverages and pet food.

For business owners, investors, and expats based in Thailand, large-scale foreign investments of this nature serve as a reminder of how critical it is to have solid legal structures in place, particularly when it comes to BOI applications, business agreements, and dispute resolution frameworks.

At SLF Legal in Koh Samui, we assist clients across Thailand with business formation, investment compliance, and contract matters. Whether you are exploring investment opportunities or need guidance on operating within Thai law, our team is here to support you every step of the way.

Feel free to reach out to us directly for a confidential consultation.