Oatly Invests $16M in Swedish Factory to Boost Capacity Amid ‘Growing Demand’ for Oat Milk

Swedish oat milk pioneer Oatly is investing $16 million into its Landskrona facility to expand production capacity by over 33% in response to increasing demand for its products. The expansion is part of the company's efforts to reduce its climate impact and align with its climate strategy. The project, which is set to be completed by March 2027, will enable Oatly to source more oats from Swedish farmers and achieve efficiencies in ingredient sourcing and distribution.

Oatly's performance in the European market has been strong, with double-digit growth in the region driven by new product offerings and expansion into new consumption categories. The company's move to scale up its production capacity at the Landskrona plant comes after previous manufacturing struggles, including abandoning construction projects in the US, the UK, and China. Despite these challenges, Oatly has seen revenue growth and profitability, transitioning from a structurally unprofitable company to one that is now structurally profitable with accelerating goals.