AutoStore opens new factory in Thailand to expand APAC operations

AutoStore, the warehouse technology company known for automated storage and retrieval systems, has announced opening a new assembly factory in Rayong Province, Thailand. This move is part of the company's broader strategy to expand its operations in the Asia Pacific (APAC) region, serving markets such as Australia, Japan, South Korea, and Singapore more effectively.

The new Thai facility is set to play a pivotal role in AutoStore's production capabilities, doubling the company's current manufacturing capacity within the first year. The factory will produce 15,000 robots within the next 18 months to meet the increasing customer demand. The announcement coincides with AutoStore's claim that it has distributed over 1,450 systems across 54 countries, making it a significant player in the global automated fulfilment system market.

AutoStore's CEO, Mats Hovland Vikse, elaborated on the company's decision to open a new factory in Thailand. "Since 2012, our robots have been manufactured and shipped exclusively from Poland. With increased demand for our automated fulfilment system across North America and worldwide, it has become imperative that we open a second robot factory to better serve current and future customers. The workforce availability, proximity to harbours and airports, favourable labour costs, and government incentives for automation companies made Thailand an ideal location for our second robot factory to power AutoStore's North American operations," he said.

Israel Losada Salvador, COO at AutoStore, also commented on the expansion. "In the last 24 months, we have tripled our existing capacity and put in place a structure to go 10x in another 24 months if needed. With our expansion into Thailand, we have not only increased capacity but also established a more diversified supplier base. AutoStore's lead times have gone from 34 weeks to 20 weeks," he stated.

The new factory is expected to create around 80 direct employment opportunities in its first year, with plans to increase to between 200 and 300 jobs by 2026. This factory will manufacture state-of-the-art robots that form the backbone of AutoStore's cube-based modular storage system. This system replaces traditional shelf-based storage with an automated process that accelerates order fulfilment, maximises warehouse space, and enhances operational efficiency.

AutoStore's choice of location in Thailand is influenced by multiple factors, including the nation's incentives for automation companies and its strategic proximity to key markets. By reducing the shipping distance between the factory and clients, AutoStore aims to significantly improve its service to leading brands in APAC, such as Puma, Gucci, and Decathlon, among others.

In Australia, AutoStore recently received the 2023 Australian Supply Chain & Logistics (ASCL) Award in the category of Automation, Robotics or Emerging Technology. The company was also named a finalist for the Environmental Excellence Award hosted by the Supply Chain & Logistics Association of Australia (SCLAA). One of AutoStore's notable projects in Australia involved Davcor Group, a local designer, manufacturer, and distributor of locks, where AutoStore's solution enabled cost savings, operational streamlining, and improved working conditions for employees.

In Singapore, GLS, a wholly-owned subsidiary of Fairprice Group, has adopted AutoStore's technology to meet the growing demands of online e-commerce. In Thailand, the True Group has implemented AutoStore's system at ICONSIAM, a high-profile shopping destination in Bangkok.

AutoStore's global operations have expanded significantly over the years. The establishment of the new factory in Thailand underscores the company's commitment to meeting the rising demand for automated fulfilment solutions in the APAC region and worldwide.