The 2004 explosion, in Maryhill, also left more than 30 people injured.
David T Morrison & Co, the owner of nearby Gael Home Interiors, sued factory operator ICL Plastics, seeking compensation for damage to its building and loss of earnings.
But the Supreme Court in London rejected the compensation bid as it was time-barred.
Under the law, action must be taken within five years, but Gael Home Interiors made their claim in August 2009 - three months after the deadline.
ICL admitted it would have been liable had it been sued before May 11, 2009.
Judges dismissed the Gael Home contention that the five-year period should begin when the extent of the damage was known, rather than simply when the incident occurred.
A spokesman for Gael Home Interiors, which is still based in Maryhill, said the firm had been "innocent bystanders" in the plastics factory tragedy and was now studying the ruling in detail. He added: "Obviously, we were looking to be recompensed. It would be very unfair if we could not be."