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Oat Milk Manufacturer Oatly to Invest $40M in Utah Plant

January 10, 2019
Oat milk maker Oatly plans to open a $40 million plant in Utah. Image courtesy of Pixabay
Oat milk maker Oatly plans to open a $40 million plant in Utah. Image courtesy of Pixabay

Swedish-owned oat milk and oat-based food products maker Oatly Inc. is investing up to $40 million in a new production plant in Ogden, UT, creating about 50 new jobs, the Utah Governor’s Office of Economic Development (GOED) announced Tuesday in a press release. 

“As a 25-year-old company, we’ve been blown away by the enthusiasm and incredible demand for Oatly that we’ve seen here in the states over the past few years. We’re equally excited that we’ve been able to make our products for the U.S. right here in North America,” Mike Messersmith, general manager of Oatly U.S., said in a statement, “Through this partnership with the state of Utah, our upcoming factory in Ogden will help us keep oat milk in all the many coffee shops, grocery stores, and refrigerators that want it.”

The firm currently distributes its products across 20 countries in North America, Europe and Asia, according to information on the company’s website. Last December, a number of media reports noted that demand in the U.S. for the plant-based milk alternative had skyrocketed, leading to shortages of Oatly products.

State officials approved $295,463 in post-performance Economic Development Tax Increment Finance (EDTIF) tax credit rebates linked to Oatly’s project. The company will receive a portion of the funds on an annual basis if it meets conditions set out by the Utah legislature and Utah GOED. 

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