Swedish oat milk maker Oatly announced the closure of its Singapore production facility after three years of operation. The decision aims to optimize costs and reduce future capital expenditure. The company emphasized its commitment to supporting affected employees with outplacement assistance and training.
Swedish drink company Oatly announced on Wednesday (Dec 18) the closure of its Singapore plant in Senoko after three years in operation. The move aims to improve the company's future cost structure and reduce future capital expenditure needs, the company said in a press release. Oatly was in a partnership with Singapore food and beverage company Yeo's to produce its oat milk. The S$30 million (US$22 million) production plant opened in October 2021.
In response to CNA's queries, Oatly said 34 employees in Singapore will be affected by Wednesday's announcement. This will take place through a phased approach over the coming months, a spokesperson said. 'We are committed to supporting all impacted employees and ensuring they are treated with respect and care in line with the company’s values; this includes offering outplacement assistance and training,' the spokesperson added.The Food, Drinks and Allied Workers Union (FDAWU) said that Oatly is non-unionised. FDAWU president Julie Cheong said that it will support affected union members where required by leveraging the wider labour movement network. This includes using NTUC's Employment and Employability Institute to provide job matching and career advisory services. Oatly oat milk products in a factory. (Photo: Facebook/Oatly)The plant in Ma’anshan in Anhui province has the capacity to produce about 150 million litres of oat-based products annually, compared with the Singapore plant's 60 million litres. Oatly CEO Jean-Christophe Flatin said that the company's decision to separate its greater China business from its Asian business has led to 'significant improvements' in the health of its greater China busines
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