The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Bloomberg
Oatly Group AB surged after announcing it will transfer leases and production capacity at two US facilities to Canadian manufacturer Ya YA Foods Corp — a bid to fix product shortages that have plagued the Swedish oat milk maker.
The $98.1 million co-packing agreement, expected to close in the first quarter, will last 10 years and is part of a shift to
an “asset-light†supply-chain strategy, Oatly and Ya YA Foods said in a joint statement.
Ya YA Foods will assume the leases and acquire certain assets for Oatly’s Ogden, Utah, facility and its planned production site in Fort Worth, Texas.
“We expect this partnership to help streamline the focus for our organisation and remove the operational complexity associated with running factories and constructing them at the very same time,†Oatly CEO Toni Petersson said.