Swedish drink company Oatly announced on Wednesday (Dec 18) the closure of its Singapore plant in Senoko after three years in operation.

The move aims to improve the company's "future cost structure and reduce future capital expenditure needs", the company said in a press release.Oatly was in a partnership with Singapore food and beverage company Yeo's to produce its oat milk. The S$30 million (US$22 million) production plant opened in October 2021.

In response to CNA's queries, Oatly said 34 employees in Singapore will be affected by Wednesday's announcement. This will take place "through a phased approach over the coming months", a spokesperson said.

"We are committed to supporting all impacted employees and ensuring they are treated with respect and care in line with the company's values; this includes offering outplacement assistance and training," the spokesperson added.