Nestlé plans new Thai coffee factory in investment program worth nearly 30 billion baht
Nestlé plans to build a coffee factory and distribution center in Samut Prakan, with the first phase expected to open in 2028. The project forms part of a nearly 30-billion-baht investment program covering the coffee plant and expanded pet food capacity.
New factory scheduled to begin production in 2028
Nestlé plans to build a new coffee factory at the Araya Industrial Estate in Thailand’s Samut Prakan province, reinforcing the country’s role in the company’s beverage operations. Positioning Magazine reported that the first phase is expected to begin operating in 2028.
The facility will manufacture Nestlé’s main coffee formats, including instant coffee powder, canned coffee and 3-in-1 products. It will also contain a distribution center and is expected to employ more than 500 people. Nestlé describes the project as one of the modern factories in its global production network.
The development is part of a nearly 30-billion-baht investment made in 2026 with support from Thailand’s Board of Investment. According to Positioning Magazine, the wider program covers construction of the coffee factory and an expansion of pet food production capacity. The source did not disclose how the total investment is divided between the two businesses or specify the new coffee plant’s production capacity.
Temporary supply arrangements follow closure of QCP production
The investment follows the end of production at Nestlé’s previous coffee factory after its joint-venture agreement with the Mahagitsiri family in Quality Coffee Products, or QCP, expired. Nestlé has temporarily redistributed coffee production among some of its eight existing factories in Thailand.
The company is also using domestic original equipment manufacturers for certain stock-keeping units, while importing other products from abroad. This mix allows Nestlé to maintain supply until the new facility starts operating, but it leaves parts of the portfolio dependent on external producers or international shipments during the transition.
Nestlé said the termination of the QCP agreement complied with its contractual terms and had gone through arbitration and proceedings in Singapore’s courts. The company said it would continue contesting the dispute. No financial value for the case was provided in the source material.
Domestic robusta purchases link the project to Thai growers
Local sourcing will remain important to the expanded coffee operation. Nestlé says it purchases Thai robusta beans equal to as much as 50% of the country’s total output, making the company a major buyer for domestic farmers. A factory capable of producing instant, canned and 3-in-1 coffee would bring several processing and packaging activities together at one site, alongside distribution.
The project follows more than 27.8 billion baht invested by Nestlé in Thailand between 2018 and 2025. The company has operated in the country for more than 130 years and says most of its products are made at eight Thai factories. For competing beverage producers and processors, the new plant represents a substantial long-term commitment to local manufacturing. For growers, the commercial effect will depend on the facility’s eventual capacity and procurement needs, which have not yet been disclosed.
