Singapore – Oat drink company Oatly has announced that it is closing its Singapore facility in the Europe and international segment. With that in mind, the company’s expected growth in the segment’s Asia-Pacific region will be supported by the segment’s existing facilities in Europe.
It is also worth noting that the closure will affect 34 local employees and is part of the company’s broader efforts to streamline operations and improve its financial structure.
Jean-Christophe Flatin, CEO at Oatly, stated, “Over the past two years, our supply chain teams have done a good job at improving utilisation, efficiency, and reliability while also finding solutions to enable us to gradually expand capacity when needed to support our growing business. These actions have led to strong service rates and improved gross margins.”
He added, “Additionally, our prior decision to separate our Greater China business from the rest of the Asian business has enabled us to increase our local focus and competitiveness, which has led to significant improvements in the health of our Greater China segment.”
Flatin also stated that they expect that the action will capitalise on those collective improvements and further strengthen our ability to ensure that they have the right amount of capacity while being efficient with their capital and costs.
Moreover, Oatly also expects the continued simplification of their operations to enable us to sharpen its focus on execution toward consistent and structural profitable growth.
“On behalf of the entire Oatly team, I want to express my deep gratitude to the team at the Singapore plant for the work they have done over the years,” Flatin added.