Oatly, a Swedish beverage company, announced on Wednesday ( Dec. 18 ) that its Senoko, Singapore, plant will be shut down after three years in operation.
According to the company, the shift aims to improve the company’s “future cost structure and lower potential capital expenditure requirements.”
Oatly collaborated with Yeo’s, a Singaporean restaurant and beer business, to create its oat milk. The S$ 30 million ( US$ 22 million ) production plant opened in October 2021.
In response to CNA’s questions, Oatly said 34 people in Singapore may be affected by Wednesday’s news.  , This will take place” through a phased approach over the coming times”, a spokeswoman said.
The director continued,” We are committed to supporting all effected employees and ensuring they are treated with respect and attention in accordance with the company’s principles, including providing outplacement support and training.”
CNA has contacted Yeo’s for more information.
Oatly CEO Jean-Christophe Flatin said that the firm had seen” major changes” in the health of its greater China business.  ,
We anticipate that the behavior we are announcing now will capitalize on those individual improvements and help us to ensure that we have the necessary power when we need it while being successful with both our funds and costs.
We even anticipate that as we continue to simplify our operations, we can improve our focus on execution as we strive for consistent, structurally successful growth and ultimately fulfill our company’s mission.  ,
” On behalf of the entire Oatly staff, I want to express my sincere gratitude to the staff at the Singapore flower for the job they have done over the years.”
In the third fourth of 2024, Oatly said it expects to pay non-cash damage expenses of between US$ 20 million and US$ 25 million as a result of the closing.  ,
Restructuring costs and other enter costs may even contribute to net cash outflows of US$ 25 million to US$ 30 million through 2027, it added.
The company stated that its facilities in Europe will support its anticipated growth in the Asia-Pacific area following the shutdown of its facility in Singapore.