Oatly says the factory will be able to create at least 200 jobs and has the potential to grow its production to 450 million litres of dairy-free milk annually—making it one of the largest plant-based dairy factories in the world.  

Swedish brand Oatly has announced plans to open its first dairy-free milk factory in the United Kingdom by 2023.

The Peterborough-based unit will be able to produce 300 million litres of oat milk annually at launches, with the capacity to grow to 450 million litres making it the largest plant-based dairy factory in the world.

The company added that the new facility will create “at least 200 jobs” and the oats  used at the site will be sourced locally to support the domestic market.

‘Systemic shift towards plant-based’

 “Questions about a potential UK factory have been circulating for a while, and we’re really excited to finally announce the news of its arrival in 2023,” Ishen Paran, General Manager at Oatly UK, said.

“The UK is a really important driver of the global plant-based movement, with growing demand for Oatly across the country, and we’re excited to supply this increased demand.”

After submitting a planning application for the factory last month, Oatly, backed by Oprah Winfrey, vegan actress Natalie Portman, and rapper Jay-Z said that the facility will help continue Oatly’s mission to create a ‘systemic shift in society and the food system towards plant-based’.

‘Sustainability is core to our factory planning’

The vegan food and drink products maker added that it plans “to build factories fit for the future” with sustainability being core to its planning.

The plant will use ” 100% renewable energy”, which will help reduce its energy consumption, water consumption, and waste by 75% by 2029 in comparison to Oatly’s environmental footprint in 2019.

 “We look forward to supplying the UK with more oat drink. We’re even more excited to do it in a sustainable way,” Chief Supply Chain Officer Johan Rabe said.

“Like everything we do at Oatly, we’ve ensured that sustainability is core to our factory planning.

“Everything, from the sourcing of our oats, to the production of our product range specifically designed for humans, has sustainability at the heart of it.”

News of the factory also follows close on the heels of the oat drink brand planning a potential initial public offering (IPO) this year that could raise as much as $1 billion. 

• Read: Oatly’s viral Super Bowl advert has everyone talking about vegan oat milk

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Mohsina Dodhiya

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