Oatly, the Swedish oat milk firm, is closing its manufacturing plant in Singapore after evaluating its provide chain community within the area.
This was the corporate’s first manufacturing facility in Asia, serving the APAC area. With this closure, the area might be served as a substitute by Oatly’s Europe amenities.
Moreover, the corporate additionally has a manufacturing facility in China and a separate Better China section.
Oatly stated in its assertion that the transfer “aligns with the corporate’s asset-light supply-chain technique.” In accordance with the assertion, the closure is predicted to enhance Oatly’s future price construction and scale back the necessity for future capital expenditure.
Jean-Christophe Flatin, the CEO of Oatly, added that the closure of the manufacturing facility in Singapore will “assist to optimise the corporate’s manufacturing capability whereas being environment friendly with its capital and prices.”
Layoffs ensue
The closure will impression a complete of 59 employees, together with 34 Oatly staff.
The rest had been employed underneath the Singaporean beverage firm Yeo Hiap Seng (often known as Yeo’s).
Yeo’s reported that the affected staff had been employed particularly to help Oatly’s manufacturing at Yeo’s Senoko plant, and the layoff is a direct results of Oatly’s analysis of its provide community.
“Yeo’s has made each effort to reassign as many as attainable, and has efficiently positioned 16 staff in different roles inside Yeo’s,” the corporate stated in a press release, The Straits Instances reported.
Sadly, 25 staff needed to be retrenched and can obtain severance packages based mostly on their wage and years of service.
The Singaporean beverage producer has partnered Oatly in Singapore since 2019. Regardless of the plant closure, it’ll proceed to help Oatly’s distribution in Singapore and Malaysia.
Except for Oatly, there are different oat milk choices out there in Singapore, with essentially the most outstanding one being Oatside, a Singapore-based model backed by buyers like Temasek and Granite Asia.
With the closure, it could possibly be attainable that Oatly’s costs in Singapore might fluctuate, maybe tipping the favour for manufacturers similar to Oatside.
Be taught extra about Oatly right here.
Learn different layoff information we’ve written right here.
Featured Picture Credit score: Oatly / CMR Group
