Opinion

AutoStore opens Thailand assembly plant to speed US warehouse robot deliveries

Archive editionPriya RamanJun 19, 2024· 15,925 views

AutoStore opens a new robot assembly factory in Thailand to double capacity and cut lead times for North American customers.

In context

Mid-2024 saw warehouse automation providers racing to meet surging e-commerce demand. AutoStore, a leading maker of cube-based automated storage and retrieval systems, had been manufacturing robots exclusively in Poland since 2012. With North American orders climbing, the company needed a second production hub closer to key markets.

What was reported

AutoStore opened an assembly factory in Rayong Province, Thailand, to support its global expansion, particularly in Japan, Korea, and the United States. The company reports over 1,450 systems deployed across 54 countries, including 232 systems and 17,000 robots operating in the US for brands like Puma, Gucci, and Best Buy.

CEO Mats Hovland Vikse cited workforce availability, proximity to harbors and airports, favorable labor costs, and government incentives as reasons for choosing Thailand. COO Israel Losada Salvador noted that capacity has tripled in the last 24 months, with a structure in place to grow tenfold in another 24 months if needed. Lead times have dropped from 34 weeks to 20 weeks.

The factory is expected to create about 80 jobs in its first year, rising to 200–300 by 2026. Within 18 months, AutoStore aims to produce 15,000 robots annually, doubling current capacity to meet North American demand. This follows the opening of a new US headquarters near Boston and expanded partnerships, including with medical supplier Medline.

Why it mattered

The move reflects a broader trend of regionalizing robotics production to shorten supply chains and respond faster to market shifts. For manufacturers and integrators, shorter lead times and increased capacity for automated storage systems can accelerate warehouse automation projects and improve scalability.

“The workforce availability, proximity to harbors and airports, favorable labor costs, and government incentives for automation companies made Thailand an ideal location for our second robot factory.”

Source: Robotics & Automation News (roboticsandautomationnews.com) · Published 2024-06-19 · “AutoStore establishes new assembly factory in Thailand”