Located in Peterborough and creating over 200 jobs, Oatly’s new factory is set to launch in Q1 2023.

The facility will be able to produce 300 million litres of oat drink per year at launch, with the capacity to grow to 450 million litres - making it one of the largest plant-based dairy factories in the world.

The Malmö-based company, currently available in more than 20 countries globally, said the UK factory is part of the wider initiative to build factories fit for the future, with efficient use of resources and minimal negative impact on the planet.

Oats will be sourced locally across the UK and the factory will supply the UK market. The firm is aiming to use 100% renewable energy, and decrease its energy consumption, water consumption and waste by 75% each at the factory, by 2029 compared to Oatly’s environmental footprint in 2019.

Johan Rabe, Chief Supply Chain Officer, at Oatly said: “We look forward to supplying the UK with more oat drink - we’re even more excited to do it in a sustainable way. 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. Even as we strive to grow one of the biggest plant-based dairy factories to its full capacity, this will still be our top priority.”

Is cutting dairy really the best way to reduce your carbon footprint?

Much of Oatly’s appeal is based on its eco-credentials. For example, according to climate footprint data, the company claims its Oatly Barista Edition sold in the UK generates about 70% less CO2e than British cow’s milk.