Oatly, the world’s largest producer of oat-based drinks, has announced the closure of its factory in Singapore as part of its strategy to create a more efficient and “asset-light” supply chain.

The closure of the Singapore facility is expected to improve the company’s cost structure and reduce the need for future investments. Production from the Singapore factory will be shifted to Oatly’s existing facilities in Europe, increasing capacity utilization there. The closure will result in write-downs of $20–25 million in the fourth quarter of 2024, along with restructuring costs of $25–30 million through 2027.

CEO Jean-Christophe Flatin stated that the decision is a step toward strengthening the company’s efficiency, focus, and profitability, while continuing to support the Asian market through its European segment. He also expressed gratitude to the Singapore team for their contributions over the years.

Oatly remains committed to sustainability and the development of plant-based dairy alternatives. The company currently operates in more than 20 countries worldwide.

Read the full press release HERE

Photo: Oatly