Nestlé has announced it is moving ahead with an investment worth 23 billion baht to build a new Nescafé production plant in Thailand along with a modern distribution centre. The project has already received investment promotion from the Board of Investment, or BOI. The new factory will create more than 520 jobs in the country and will use large volumes of raw materials and supplies sourced within Thailand, including coffee beans, sugar and raw milk from Thai farmers. The value of domestically sourced raw materials and supplies is expected to be around 4.3 billion baht per year. The investment announcement comes amid a dispute between the Mahagitsiri family and Nestlé over the end of their coffee joint venture agreement, in which arbitration tribunals and courts abroad have ruled that Nestlé lawfully terminated the contract. Mr Prayut Mahagitsiri accepted the rulings and paid court fees of nearly 6 million US dollars in April, but the Mahagitsiri family is still pursuing lawsuits in Thai courts and filing complaints with various government agencies, even though the dispute has already been finally resolved under the rulings of the arbitration tribunals and foreign courts.
Nestle S.A.Nestlé announces a 23 billion baht investment in Thailand for a new Nescafé factory and distribution centre, creating jobs and sourcing local raw materials.
