KITCHENER -- A Chinese glass company is looking to set up shop in Stratford.

Xinyi Canada Glass has named the city as its preferred location for its first Canadian manufacturing facility.

The development is being considered on lands at the southwest corner of the city, near the Wright Business District.

"The investment is for a million square foot facility to be built with a possible million square foot expansion," Stratford Mayor Dan Mathieson said. "The price tag for the project to open is $400 million."

In a news release, investStratford said a proposed boundary adjustment would allow for new industrial development in the city. InvestStratford said it's also looking for other developments to add to the recently annexed lands.

Xinyi tried to bring a plant to Guelph-Eramosa Township in 2018, but received pushback from residents over environmental concerns. The township ultimately voted to uphold its dry-use zoning bylaw and blocked the application.

There were concerns over the facility using more than 1 million litres of water per day.

Mark Balkwill was part of the petition in 2018 and has a message for Stratford.

"I think the community should ask questions about where that water is coming from and what it means for their future supply," he said.

Mathieson said Stratford is currently pumping at 31 per cent of the city's water capacity. The facility would increase that capacity to 37 per cent, he said.

"Here they would be on the municipal water service," Mathieson said. "We have worked with the Ministry of Environment to review our water-taking permit."

He said they are considering how they relate to Ontario and Canadian environmental laws, saying that the company will meet those requirements.

A Xinyi spokesperson declined to comment to CTV News, but said there are upcoming public information sessions.

Mathieson said the proposed development plan will come to council in November.

The factory could create 320 full-time jobs.