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Oatly to open major plant-based dairy factory in Peterborough

Oatly, the Swedish oat milk giant, has partnered with drink and food capital investment expert, Integrated Food Projects, to create its first UK factory.

Located in Peterborough and creating over 200 jobs, the factory is set to launch in Q1 2023.

The delivery of the factory will form part of a new end-to-end integrated supply chain in the united kingdom, which IFP is helping to develop.

As a purpose-led project, it’s critical that Oatly’s ethos is supported throughout the supply chain – reducing road miles, the carbon footprint and ultimately, it’s impact on the environment.

The new factory can produce 300 million litres of oat drink per year at launch, with the capacity to grow to 450 million litres – which makes it one of the largest plant-based dairy factories in the world.

This means plant-based dairy will be more available for people to switch to, helping these to reduce their climate impact. For instance, according to climate footprint data, Oatly Barista Edition sold in the UK generates about 70% less CO2e than British cow’s milk.

The UK factory is part of the wider initiative from Oatly to construct factories fit for the future, with efficient use of resources and minimal negative impact on the planet.

With an ambition of continuous improvement in all areas, the Swedish company is aiming to use 100% renewable energy, and reduce its energy consumption, water consumption and waste by 75% each in the factory, by 2029 compared to Oatly’s environmental footprint in 2021.

Sustainability is at the heart of the planning process, and IFP and Oatly will work to ensure the new factory brings value to people and the planet without recklessly taxing the planet’s resources. The brand new factory will continue Oatly’s drive to create a systemic shift in society and the food system towards plant-based.

Oats is going to be sourced locally across the UK and also the factory will supply the UK market. Health and safety of workers will also be placed at the forefront. All policies will adhere to Oatly’s global standards to make sure people feel safe, valued and empowered whilst trying to help protect the planet.

“There is a huge demand for Oatly products in the UK, and we are delighted to be working with them to deliver their vision of what a factory of the future can achieve,” said Matt Carr, joint-MD at Integrated Food Projects.

“Sustainability is at the heart of Oatly’s business and helping to create a new factory and UK logistics, in line with the ethos of the Oatly brand, is vital for the successful delivery of the project.”

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