A factory supplied by the Irish Republic's 1,300 bottle banks is closing, with the loss of 375 jobs.
The move throws into doubt the future of glass bottle recycling in Ireland.
Ardagh Glass says its Dublin plant will close by June because it's uncompetitive due to the failure of employees to agree changes in work practices.
The development is likely to put pressure on the Irish government to come up with alternative glass recycling facilities to meet European Union requirements.
For the past 18 years, Ardagh Glass has had a contract with the disability charity Rehab Fellowship.
The charity gathers more than 30,000 metric tons of glass - some 100 million bottles and jars - from collection points nationwide each year as part of its fundraising activities.
Bob Rowate, general manager of Rehab Fellowship, says it expects to collect a record 36,000 metric tons of glass this year and recently agreed a new three-year contract with Ardagh Glass - which was due to be signed shortly.
Rowate says: "I think we have to face the reality that the Ardagh plant is now closing. This has serious implications - we have lost a substantial section of our market."
Glass is banned at many Irish landfill sites because of its recycling potential.
Under EU regulations, Ireland in required to recycle 200,000 metric tons of packaging material - including glass - each year. Irish Times
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