Xinyi Canada Glass says it's disappointed it won't be able to build its manufacturing plant on land between Cambridge and Guelph, but the company remains committed to building its first North American float glass facility.

On Monday night, Guelph/Eramosa council voted in favour of a motion to uphold a bylaw that would keep the proposed factory site at Highway 124 and Wellington 32 "for dry use" only. It means any industry that sets up at that location cannot use significant amounts of water for production.

It met with resistance from a group of residents concerned about the amount of daily water the company would take from the area. The company planned to use an estimated 1.6 million litres of water a day in the manufacturing process.

In a statement on its website, the Chinese company said "Our commitment to build our first North American float glass facility to serve the increasing demand of the North American market remains unchanged."

"We will review our position and consider possible options to go forward," the statement said.

Xinyi still plans to build a facility to produce glass for the Canadian and northern U.S. states.

The company thanked members of the business community, local residents and the post-secondary institutes who supported their application.