Oatly Announces Closure of Singapore Facility to Further Streamline Operations

Oatly Group AB has announced the closure of its manufacturing facility in Singapore as part of its ongoing efforts to streamline operations and optimize its supply chain. This decision aligns with the company’s strategy to focus on enhancing operational efficiency, reducing capital expenditure, and simplifying production processes. By closing the Singapore facility and consolidating its supply chain network in Asia, Oatly aims to utilize its European facilities to meet the growing demand in the Asia-Pacific market, leading to improved capacity utilization.

CEO Jean-Christophe Flatin highlighted the efficiency gains achieved by the company's supply chain teams and emphasized the benefits of separating the Greater China business from the rest of the Asian operations. This move to shift focus to European assets follows Oatly’s decision to cancel plans for a large-scale factory in the UK. The closure of the Singapore facility is expected to result in non-cash impairment charges and restructuring costs, with further details to be disclosed during the company’s fourth-quarter earnings call in early 2025.