Oatly Group AB, the world's premier oat drink company, and Ya YA Foods Corporation, a top contract manufacturer of aseptic food and beverage products, have declared a long-term strategic hybrid partnership in North America. In this arrangement, Oatly will manufacture its unique oat base at the Ogden, UT and Fort Worth, TX facilities. This will then be transferred to Ya YA Foods for co-packing into Oatly products. Ya YA Foods will acquire most of the assets and the property lease of Oatly’s Ogden production site and take on the construction of the Fort Worth facility. Oatly will maintain full ownership of the oat base production lines in both facilities. The deal sees Oatly receiving around $72 million plus credit for shared assets related to the Ogden facility and credit for ongoing Fort Worth construction. The transaction is set to finalize in Q1 2023. This move aligns with Oatly’s objective to adopt an asset-light supply chain approach, optimizing its hybrid production globally. It's anticipated to enhance capital savings and positively impact cash flow. Additionally, it signifies Ya YA Foods’ introduction to the U.S. manufacturing domain. Oatly CEO, Toni Petersson, praised the partnership, emphasizing its alignment with Oatly’s mission for plant-based, environmentally friendly products. Yahya Abbas, Ya YA Foods CEO, highlighted the mutual benefits, emphasizing their goal of becoming North America's leading aseptic beverage co-manufacturer. The agreement details can be found in the Report on Form 6-K filed by Oatly with the SEC on January 3, 2023.