Shan County, China:Pioneering the Global Fiberglass Industry with 80% Market Dominance

Industry 2025年3月24日

Summary:
Shan County in Shandong Province has transformed its fiberglass industry from small-scale workshops to a high-tech manufacturing hub, accounting for ​80% of China’s fiberglass output. Leveraging decades of expertise, strategic government support, and cutting-edge R&D collaborations, the county now leads the nation in producing advanced materials for industries ranging from aerospace to renewable energy.


1. Historical Evolution & Industrial Upgrading

Once dominated by state-owned factories established in the 1970s, Shan County’s fiberglass sector transitioned to a ​private-sector-led industry in the 1990s. Today, it boasts ​70+ enterprises (including 13 large-scale firms) and ​500+ individual workshops, concentrated in four key towns. The local government’s 2021 initiative to build a ​national high-performance materials industrial park catalyzed modernization, replacing outdated machinery with ​300 platinum crucibles and ​6,000 air-jet looms. This shift enabled mass production of ​70+ product varieties, including aluminum foil cloth, insulation fabric, and window screens.


2. Technological Innovation & R&D Collaboration

Shan County’s success hinges on ​strategic partnerships with Nanjing Fiberglass Research Institute (China’s sole fiberglass R&D body) and adoption of a ​**”talent hub” model**. These efforts yielded:

  • A ​materials science institute and ​testing center for quality assurance
  • 100+ patents and ​50+ pending applications
  • Automation upgrades for spinning equipment and weaving machinery

By prioritizing ​R&D-driven innovation, the county shifted from low-value raw material exports to high-margin engineered products like ​high-temperature-resistant glass fiber for aerospace and ​electrical insulation materials for EV batteries.


3. Market Leadership & Global Reach

Shan County dominates ​80% of China’s fiberglass market, with key products holding ​over 80% domestic market share. Notable exporters like Tianrui New Materials and Pengxin Fiberglass ship to ​50+ countries, including the U.S., Australia, and Turkey. In 2023, exports totaled ​**$1.2 billion**, fueled by demand for lightweight composites in automotive and renewable energy sectors.


4. Economic Impact & Sustainable Growth

The industry generates ​**¥6 billion in annual revenue** and employs ​20,000+ workers (average salary ¥5,000/month), plus ​50,000+ indirect jobs in logistics and services. Local policies—such as tax incentives and infrastructure investments—have sustained growth while balancing environmental stewardship.


5. Future Outlook

Looking ahead, Shan County aims to:

  • Double down on ​smart manufacturing with AI-driven production lines
  • Expand into ​carbon fiber and ​renewable energy materials
  • Strengthen global partnerships through overseas R&D centers