Oatly has announced the opening of its first manufacturing facility in China, as it looks to expand its production capacity in Asia.

Located in Ma’anshan, Anhui province, the facility has the potential to produce an estimated 150 million litres of oat-based products annually at full capacity.

The opening comes just a few months after Oatly – which claims to have established a new Chinese character for ‘plant-based milk’ – inaugurated its first Asian factory in Singapore.

“Oatly has grown to be the leader of the plant-based milk category in China and around the world, enabling people to switch from cow’s dairy to oat drink,” said Oatly CEO, Toni Petersson.

“To meet the demand and to be a leader in the shift to a more plant-based future, Oatly expects to continue to grow and expand our production capacity with factories closer to our consumers.”

He added: “We are confident in the continued growth of the Chinese market and that the new Chinese factory will accelerate our mission to drive a societal shift towards a plant-based food system for the benefit of people and the planet”.

David Zhang, Asia president of Oatly, said: “Following the debut of our first factory in Asia, in Singapore this July, the opening of the first factory in China provides more capacity for Oatly in Asia, supporting the global expansion and meeting the increasing market demand”.

“With the opening of this new factory, we are extending the world-class oat drink production process from Sweden to China, making plant-based diets accessible to more people to address the climate challenges that mankind faces.”

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