Oatly is set to invest $16 million to expand its production facility located in Landskrona, Sweden. This strategic move aims to enhance the plant’s capacity by over 33%, thereby addressing the rising global demand for its popular plant-based drink offerings.
In a statement the dairy-alternatives brand confirmed that this financial commitment will be distributed over multiple years to support the upgrades. The expansion will result in the construction of three new production lines, ultimately increasing the Landskrona plant’s annual output from 150 million liters to 200 million liters.
This initiative is crucial for Oatly as it seeks to satisfy “accelerating global demand for its plant-based drinks.” Construction is anticipated to commence this month, with completion planned for March of the following year.
Simon Broadbent, Oatly’s SVP of Sustainable Operations, remarked, “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.” He added, “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.”
Since its inception in 2006, the Landskrona site has employed over 300 individuals. Importantly, increased production at this facility will allow Oatly to source a larger quantity of oats from Swedish farmers. Currently, nearly 70% of the volume produced at the site is exported, and this share is expected to rise post-expansion given the increasing demand for Oatly products, notably in countries such as Germany and the UK. Additionally, the site will cater to emerging markets like France and Spain, where demand for oat-based products is rapidly growing.
Oatly operates in over 60 countries, having established itself as a leading player in the food and beverage industry trends. With two production facilities and partnerships with three co-manufacturers, the company’s revenue reached $862.5 million last year, reflecting a 4.7% increase compared to 2024. Furthermore, Oatly celebrated its first full fiscal year of profitable growth in 2025, with an adjusted EBITDA of $6.8 million, a significant recovery from a loss of $35.3 million in 2024.
However, while Oatly’s North America market saw a revenue decline of 9.1%, it remains optimistic, projecting an adjusted EBITDA for 2026 in the range of $25 million to $35 million. The firm’s capital expenditure budget is anticipated to be between $20 million and $30 million, with $16 million allocated to the Landskrona facility.
In a notable legal challenge, Oatly recently lost a UK court battle involving the dairy-industry trade association Dairy UK about the labeling of oat milk. The UK Supreme Court ruled that Oatly’s “Post Milk Generation” trademark violated EU laws still applicable in the country.