Autostore drives into Thailand for robotic expansion

AutoStore, a leading automated fulfilment system company based in Norway, has chosen Thailand for its second overseas robot manufacturing base to strategically position itself closer to key markets.

Mats Hovland Vikse, chief executive at AutoStore, revealed the thinking behind the move.

“Since 2012, our robots have been manufactured and shipped exclusively from Poland. With increased demand in our automated fulfilment system across North America and worldwide, it’s become imperative that we open a second robot factory to better serve current and future customers.”

Thailand’s favourable labour costs, workforce availability, proximity to harbours and airports, and government incentives for automation companies make it an ideal location for AutoStore’s new factory. This strategic move aims to support the company’s North American operations and beyond, Vikse explained.

The establishment of the robot assembly factory in Rayong province signifies a pivotal step in AutoStore’s global expansion, bringing their robotics production closer to key markets including Australia, Japan, Singapore, and South Korea, said Israel Losada Salvador, chief operating officer of AutoStore.

“The reason for our investment in Thailand is multifaceted. While the location near important markets like Japan, Korea and the US is a significant factor, diversifying our supply chain to mitigate geopolitical risks also plays a crucial role.

“In the last 24 months, we have tripled our capacity and put in place a structure to go ten-fold in 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 technology replaces traditional shelf-based storage and manual retrieval with a cube-based modular storage system. This system uses robots to accelerate order fulfilment, maximise warehouse space, and improve operational efficiency for retailers.

The new factory in Thailand is projected to generate approximately 80 direct employment opportunities in its first year, with plans to expand the workforce to between 200 and 300 by 2026.

In the next 18 months, AutoStore aims to produce 15,000 robots, effectively doubling its current capacity to meet the rising customer demand, reported Bangkok Post.