Packaging firm Rexam has sold its Barnsley glass business to Ardagh Glass, which owns Rockware Glass, for £50m.
Rexam will still make plastic food packaging for UK customers and glass packaging for northern Europe in mainland Europe.
Rockware, which owns four other glass plants and is one of the biggest players in the UK, said the Barnsley business would give it "efficiency gains" in a market that is suffering from overcapacity.
One of the main products of the Barnsley plant, which will return to its former name of Redfearn Glass, is coffee jars for Kraft Jacobs Suchard.
Rockware said that glass packaging was being used more for premium and indulgence food but that the glass market has faced tough conditions lately.