Oatly, based in Landskrona, Sweden, confirmed plans to leverage its U.S production following a noted plateau of interest in plant-based milk among European consumers, an SEC filing reveals, according to Food Dive.
“We have adjusted the timing of our investments to prioritize the projects in the regions where the need for additional capacity is most pressing,” the SEC filing read.
The move was confirmed by CEO Toni Petersson during a Q2 earnings call. The new strategy is scheduled to be carried out in 2023.
The company now hopes to increase its production up to 1.2 billion liters from its current rate of 900 million liters by 2023.
“We have enough liquidity to support the global growth and expansion of our business for at least the next 12 months,” Petersson said.
The capacity phasing plan is designed to decrease this year’s expenditures to $220 million to $240 million from the $400 million to $500 million range.
The pursuit for global expansion began last December after the company confirmed plans to leverage its global production capacity to better fulfill growing demand.
The company also plans to open a new UK-based facility in 2024 in an effort “to align in timing and production for when we need the volumes,” and will continue to focus on the completion of its Millville, New Jersey-based facility, Petersson said.
According to Chief Strategy Officer Peter Bergh, the expansion is not solely based on the scarcity of demand in Europe, which is largely attributed to the war in Ukraine.
“Oatly’s larger initiative to expand in-house manufacturing is still on track, and the company plans to add necessary production capacity in the long-term as demand for oat-milk experiences dramatic growth in the U.S,” a recent Food Dive report affirms.