10% of China’s Color Masterbatch Comes From Here!
Xuanyuanzixiang, located in Qingyun County, Dezhou, Shandong, has risen to become one of the largest masterbatch production bases in China, with an annual production capacity accounting for 10% of the national total. The "raw materials-production-application" whole chain collaborative model it has formed provides an example of cluster development for the industry.
Representative Enterprises (Partial)
As of now, the Xuyuanzi New Material Industrial Park has cultivated a distinct hierarchy of enterprises: it includes 1 national high-tech enterprise, 1 Shandong "Gazelle" enterprise, 6 "Specialized, Refined, Characteristic, and Innovative" small and medium-sized enterprises in Shandong, and 15 innovative small and medium-sized enterprises in Shandong. These enterprises are not only contributors to the scale of the industry but also the main force of technological innovation.
Industry scale
The "Hidden Champion" accounting for one-tenth of the national output
As an indispensable core coloring material in the plastics and chemical fiber industries, the quality of color masterbatch directly determines the color stability and market competitiveness of end products. Relying on an annual output that accounts for 10% of the national total, Xuyuanzixiang has become an industry leader in production capacity that cannot be ignored.
Tracing its development, the masterbatch industry in Xuyuanzixiang began in the 1990s with a few small workshops. Through over 30 years of technological accumulation and deep market cultivation, it has gradually completed a qualitative transformation from "scattered processing" to "large-scale clusters."
Relying on a thousand-acre new material industrial park, a standardized and intensive production pattern has been formed here, making it the core hub for masterbatch supply in the East China region.
Industrial chain
The "virtuous cycle closed loop" of the coordination among the three industries
Unlike a single production base, the core competitiveness of Xuyuanzixiang lies in the construction of a complete industrial chain comprising "upstream raw materials - midstream functional masterbatches - downstream terminal applications." Currently, the new materials industrial park has attracted more than 30 enterprises to settle in, forming an industrial ecosystem that covers the entire process of color masterbatch production.
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Upstream linksFocusing on the production of key raw materials such as polyethylene wax and calcium oxide powder, providing stable local supply chains for midstream enterprises, effectively reducing procurement costs and logistics cycles.
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Midstream segmentFocusing on functional masterbatches, our products cover a diverse range of categories including color masterbatches, defoaming masterbatches, and flame-retardant masterbatches, meeting the customized needs of various industries.
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Downstream segmentExtending to the manufacturing of end products such as GPS plastic locks, SPC ecological stone-plastic flooring, food-grade plastic packaging bags, and electric wires and cables, forming a nearby conversion chain of "masterbatch production to finished product application."
This "through-wall supply" collaborative model not only achieves efficient resource allocation but also promotes the upgrade of masterbatch products from "basic coloring" to "functional compounding" through the technological linkage of upstream and downstream enterprises. For example, it customizes anti-aging masterbatches for downstream plastic lock enterprises and develops safe and environmentally friendly coloring solutions for food packaging companies.
Development Positioning
From "Specialized Clusters" to "National Bases"
The continuous upgrading of the industry relies on strong policy support. In 2024, the Xuyuanzi Township New Materials Industrial Park was successively recognized as a "Characteristic Industrial Cluster of Dezhou City," and Xuyuanzi Township was designated as a "Key Town for Regional Cooperation in the City." The development of the industry has received multifaceted support in terms of policies, funds, and land.
According to Cheng Weixing, the director of the Rural Revitalization Service Center of Xuyuanzixiang, the next step is to incorporate the new materials industry into the "15th Five-Year Plan" development strategy. By implementing comprehensive land management, innovation incentives, and talent cultivation, the goal is to advance the industry towards becoming a "nationally significant new materials industry base."
For industry enterprises, the industrial cluster in Xuyuanzixiang serves as a high-quality source of color masterbatch supply and an industrial chain cooperation platform. It can provide stable raw material supply, customized functional masterbatches, and collaborative innovation in terminal applications. Its development path offers replicable experience for the cluster-based development of China's color masterbatch industry.
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