Milk-alternative firm Oatly to open UK factory in Peterborough

The vegan alternative milk company Oatly hopes to be granted permission to open a factory in Cambridgeshire

A global firm that produces plant-based alternatives to milk is planning to open its first UK factory.

Sweden-based Oatly has submitted proposals to open a production facility in Peterborough, creating "at least 200 jobs" in 2023.

The unit will be capable of producing up to 300 million litres of oat milk per year at launch, the company said.

Oats would be sourced locally and across the UK to supply products for the national market, the firm added.

"The UK is a really important driver of the global plant-based movement," said Ishen Paran, general manager of Oatly UK.

"We're excited to supply this increased demand."

The production of the plant-based drink will use oats grown in the UK

The vegan food and drink products maker, founded by brothers Rickard and Björn Öste in the 1990s, said the UK factory would have the capacity to grow and produce up to 450 million litres of drink per year.

A planning application for the factory was submitted last month and in a statement the firm said "sustainability is core to our factory planning".

The company said its factory would be "aiming to use 100% renewable energy, and decrease its energy consumption, water consumption and waste by 75% each at the factory, by 2029".

The company sells its products in more than 20 countries across Europe and Asia.

Oatly announced last month that it was planning a stock exchange listing in the United States.

Last year, Oatly raised $200m (£145m), drawing investment from celebrities including Jay-Z, Oprah Winfrey and Natalie Portman.

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