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North America / US

Oatly expands capacity at US manufacturing facility

Sweden-based Oatly will expand the production capacity at its factory in Utah, US to support growing consumer demand.

Sweden-based Oatly, the world’s largest oat drink manufacturer, is set to increase production capacity at its US factory in Ogden, Utah. The expansion will support an acceleration in consumer demand across the Americas.

The company plans to add 75 million litres of finished goods equivalent oat base capacity in the second half of 2021. Total production will increase from an estimated 150 million litres annually to an estimated 225 million litres to support Oatly’s growth in 2022 and beyond.

The company expects its Europe, the Middle East and Africa manufacturing combined with its two facilities in the Americas and two in Asia to create more than a 200% increase in its production output by the end of 2022, from the end of 2020.

In a press release, chief executive officer Toni Petersson said: “In March 2021 we opened Oatly’s first end-to-end self-manufacturing production facility in the Americas region and we’re excited that based on an acceleration in consumer demand in the region we are already increasing capacity with construction starting in the second half of this year. We continue to generate strong growth in the US and globally with our proven multi-channel expansion strategy in more than 20 markets, across multiple sales channels and segment.”

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Naomi Davies

Naomi Davies

FDI consultant

Naomi Davies is an FDI consultant at Investment Monitor, with expertise in location benchmarking and cross-border investment.