Oatly invests in Sweden production facility

Oatly is investing $16m in the expansion of its production facility in Landskrona, Sweden.

In a statement on 5 March, the dairy-alternatives group said it will spend the sum over a “multi-year” period to upgrade the plant and lift capacity there by more than 33%.

The expansion will be used to build three new production lines and increase Landskrona plant’s annual output from 150 million litres to 200 million litres.

It is expected and enable Oatly to meet “accelerating global demand for its plant-based drinks”, the group said.

Construction is due to start this month and is expected to be completed by March next year.

Oatly sustainable operations SVP Simon Broadbent 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.”

The site, which has been active since 2006, employs more than 300 people.

Oatly added that increased production at the facility will also allow it to source more oats for its products from Swedish farmers.

Nearly 70% of the volume produced at the site is exported. The business expects that share to increase after the expansion, as it serves “increasing demand for Oatly products” in countries such as Germany and the UK.

The site will also support supplies to growth markets such as France and Spain, where “the category is taking off”.

The Malmö-headquartered company sells its oat-based dairy alternatives in more than 60 countries worldwide. It owns two production sites and works with co-manufacturers at three other locations.

Oatly achieved its first full fiscal year of profitable growth in 2025.

Adjusted EBITDA for the 12 months to 31 December stood at $6.8m, compared to a loss of $35.3m in 2024.

The firm’s revenues reached $862.5m last year, a 4.7% improvement over 2024. The company also reported sales of $233.8m in Q4 2025, up 9% year-on-year.

The group’s North America market however saw revenue drop 9.1% in reported and constant currency terms, while volumes were down 11%.

In 2026, Oatly expects adjusted EBITDA to be in the range of $25m to $35m.

The group’s capital expenditures budget is expected to sit between $20m and $30m, $16m of which has now gone towards the Landskrona site.

Last month, Oatly also lost a UK court battle with the dairy-industry trade association Dairy UK over the labelling of oat milk. The UK Supreme Court ruled Oatly’s “Post Milk Generation” trademark breaches EU laws that still apply in the country.