Swedish oat milk manufacturer Oatly announces closure of Singapore factory

On December 18th, Oatly Group, a Swedish oat milk manufacturer, announced the closure of its factory in Singapore. "This is in line with the company's light asset Supply Chain strategy and is expected to improve the company's future cost structure and reduce future capital expenditure needs," the company said in a statement. The Singapore factory is part of the group's European and international business, and the expected rise in the Asia-Pacific region will be supported by existing European factories after the closure of the factory. Due to the closure of the Singapore factory, the company expects to incur non-cash impairment charges of approximately $20 million to $25 million in the fourth quarter of 2024. In addition, after deducting the expected proceeds from the sale of certain equipment, the company estimates that restructuring and other exit costs will result in a net cash outflow of $25 million to $30 million by 2027. The company expects to recognize these costs in the fourth quarter of 2024.