Oatly Group AB announced a $16 million investment to expand its Landskrona plant in Sweden, raising annual production capacity from 150 million to 200 million liters – a 33 % increase – while keeping the same physical footprint.
The expansion is part of Oatly’s strategy to meet accelerating demand in Europe, where plant‑based drink sales rose 6 % over the past 12 months and the company has experienced double‑digit growth. Out‑of‑home and food‑service channels grew more than 20 %, and the new capacity will support higher oat sourcing from Swedish farmers and lift export volumes to Germany, the UK and other European markets.
The Landskrona plant already operates on 100 % renewable energy; the expansion will further reduce Oatly’s climate impact and reinforce its sustainability commitments, a key differentiator in the plant‑based beverage market.
Oatly’s financial context underscores the importance of the expansion. The company reported its first full year of profitable growth in 2025, with an adjusted EBITDA of $6.8 million. In contrast, Q4 2023 revenue was $204.1 million with a net loss of $298.7 million, and Q1 2024 revenue was $199.2 million with a net loss of $45.8 million. The $16 million investment was disclosed in Oatly’s 2025 full‑year results as part of expected 2026 capital expenditures, and the expansion is intended to support a path to sustained profitability through scale and efficiency.
Simon Broadbent, Oatly’s SVP of Sustainable Operations, said, "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." CEO Jean‑Christophe Flatin added, "The year is off to a good start. We are clearly seeing the benefits from the bold actions we have taken over the past two years."
Construction on the expansion is scheduled to begin in March 2026 and is expected to be completed by March 2027, with the same physical footprint and an anticipated increase in export volumes to meet growing demand across Europe.
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