Oatly, an oat-milk producer based in Malmo, Sweden, is planning to open research-and-development labs for its North American operations at the Philadelphia site owned by investment firm Alliance HSP of Bryn Mawr, writes Jacob Adelman for The Philadelphia Inquirer.

The company has leased 6,000 square feet at the Frankford Arsenal, the sprawling onetime munitions factory.

Oatly is producing oat milk that is quickly becoming a popular dairy alternative for coffee drinks and other uses.

At this time, the company has New York corporate offices for its North American business as well as a factory in Millville, N.J.

At its new location in the Philadelphia region, Oatly will explore “new concepts that use oat milk,” according to Matt Handel, an Alliance vice president.

Alliance acquired its six-building, 208,000-square-foot portion of the Frankford Arsenal property four years ago and has since been retrofitting the factory for light-industrial and office use.

The firm also recently signed Singularis Solutions, an engineering firm that specializes in medical, aerospace, and automotive industries, for a 3,200-square-foot lease at the site.

The property is now around 30 percent leased, said Handel.

Read more about Oatly in The Philadelphia Inquirer.

Check out Oatly on YouTube.