Oatly, the Swedish dairy-free business, has opened a factory in the Netherlands.

The company says the move is the result of growing demand for dairy-free products in the market.

“The Dutch have traditionally been large consumers of dairy products, however, with plant-based alternatives on the rise, this appears to be changing,” it said.

The plant at Vlissingen will be the firm’s first European factory outside Sweden. It will produce 120 million litres of oat drink base per year, for consumption in the Netherlands and other European markets.

Its new Vlissingen facility will also generate excess capacity, which offers opportunities to develop and introduce new innovations in addition to existing products, Oatly said.

Fredrik Gustavsson, operations director of Oatly’s business in the EMEA region, said: “We have seen the demand for our products and plant-based alternatives grow in the Netherlands and the surrounding regions. Vlissingen is the perfect location for our production if we want to meet this growing demand in a sustainable way. “

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Oatly said there are also plans house its central European logistics operation in the Netherlands. The packaging of the products is currently outsourced to a local co-packaging partner that operates from a site next to the Oatly new factory.