Teignbridge Council has acquired the former manufacturing base and 0.9 acre site of a company which collapsed into administration earlier this year, as part of regeneration plans for the town.
The authority has bought the Launa Windows site on the town's Bradley Lane Industrial Estate in a step towards rejuvenating the area to increase jobs and homes.
Launa was bought out of administration by Britannia Windows in May, but shifted production to a state-of-the-art facility at its Clevedon headquarters.
Council leader Jeremy Christophers said the council now owned the larger part of the estate fronting the Totnes road.
He said: "Sad as it was to see the loss of a long-term employer in Launa, this presents us with a real opportunity."