Oatly invests $16 million in its Swedish production plant to support growing global demand
The oat milk producer is expanding its Landskrona facility and increasing production to 200 million liters per year
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Oatly Group AB has announced a multi-year investment in its Landskrona production facility in Sweden to meet accelerating global demand for its plant-based drinks. The expanded infrastructure will boost the site’s production capacity by more than 33 percent while further reducing the climate impact of operations across three key areas.
Active since 2006, the Landskrona plant currently employs over 300 people. Following the refurbishment, the facility will boost its production capacity from 150 to 200 million liters per year, all within the same physical footprint. As a result of existing energy procurement (the Landskrona factory sources 100% renewable energy), alongside efficiencies in ingredient sourcing and distribution network, this project is expected to reduce the company´s total corporate climate impact in 2026 and 2027.
Simon Broadbent, SVP Sustainable Operations at Oatly, said: “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. 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.”
European demand for plant-based drinks is back, rising 6%* in the last 12 months. A rebound fuelled by Oatly’s strong performance, as the Company delivered double-digit growth in the region over the same time period, with Out-of-Home and food service channels surging more than 20%. This momentum follows Oatly’s push into new consumption and shopping occasions, from new and exciting Barista Edition flavours to breakthrough out-of-home launches like the Oatly Baristamatic for high-traffic automated coffee machines. These innovations have been developed at Oatly’s facilities in Sweden.
Increased production at the Landskrona facility will also see the Company source more oats from Swedish farmers. Following the refurbishment, exports - which currently account for 70% of volume produced at the facility - are expected to rise further to meet the increasing demand for Oatly products in places like Germany and the UK, as well as expansion markets like France and Spain where the category is taking off.
The announcement follows the publication of Oatly’s full year 2025 financial results last month, where this investment was first communicated as part of Oatly’s expected capital expenditures during 2026. The Company announced profitable growth in both the fourth quarter and full year.
Jean-Christophe Flatin, Oatly’s CEO, commented at the time: “Achieving this milestone reflects the disciplined, strategic actions we have taken over the past three years to strengthen the foundation of our entire business. We have right-sized our supply chain and overhead structure while simultaneously reinvesting behind our refreshed growth strategy. As we look forward, we see significant potential ahead, and we are confident that we are taking the right steps to drive durable, scalable, and profitable growth as we execute on our mission.”
After a preparatory period, construction work in Landskrona will begin in March 2026 and is expected to be completed by March 2027.
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