Oatly has announced a multi-year investment in its Landskrona production facility in Sweden to meet accelerating global demand for its plant-based drinks.
The $16m investment will expand infrastructure and boost the site’s production capacity by more than 33%.
Production capacity will increase from 150 to 200 million litres per year, all within the same physical footprint.
The brand said it will also reduce the climate impact of operations.
“We’re seeing growing demand for our products, so the time is right to upgrade our Landskrona site which has performed fantastically well in recent years, both in stability of output and outstanding cost management,” said Simon Broadbent, SVP sustainable operations at Oatly.
“The Landskrona factory is a key site for us, not only because of our roots in Sweden, but also because it’s a fully owned, end‑to‑end production hub and home to many of our core functions.
“You can think of it as one big oat campus,” he added.
Increased production will also result in the sourcing of more oats from Swedish farmers, and drive up export potential to the UK market among others.
“We have right-sized our supply chain and overhead structure while simultaneously reinvesting behind our refreshed growth strategy,” said Jean-Christophe Flatin, Oatly’s CEO. “As we look forward, we see significant potential ahead, and we are confident we are taking the right steps to drive durable, scalable, and profitable growth as we execute on our mission.”
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