After establishing the wineries, the Baron decided to build a factory to produce glass bottles. He put the construction and administration of the project in the hands of the young chemist Meir Dizengoff, and sent him to England and France for training in glass production. In consultation with the Baron, Dizengoff chose to locate the factory on the sands of Tantura, taking advantage of the raw materials at the site, its proximity to the port which was to be built on the Dor gulf, and the short distance to Zikhron Ya'akov and the winery. Approximately 30 workers
and craftsmen were brought from overseas, and a residential compound was constructed for them next to the factory.
In 1893 the factory went into production, producing bottles and ancillary items (glasses, plates, etc.). It operated for about two years but was closed due to production and organizational difficulties and, primarily, because of the malaria epidemic that attacked its workers.