Story | 01/18/2021 11:59:08 | 4 min Read time

Xige Estate: Leading Chinese winemakers towards a circular economy

With the sleek and modern design accompanied by world-class manufacturing equipment; Xige Estate is ready to lead the winemaking in China. With RafCycle by UPM Raflatac recycling service, the company has set an example to the Chinese winemakers to turn label release liner waste into a resource and lead the Chinese wine industry one step closer to the circular economy.


1. The innovative RafCycle recycling service turns label release liner from millions of wine labels into a resource  

2. Joining the RafCycle service helps Xige Estate to set the sustainability benchmark and lead the wineries in the Ningxia region into the circular economy

3. Sustainability has distinguished Xige Estate from the market and added value to its brand

Situated in the northwest inland plateau of China, Ningxia is one of the premier wine regions in China. In the past 10 years, winemaking in Ningxia has been growing quickly in size and reputation.

Xige Estate is one of the largest wineries in Ningxia. With its unique architectural design and state of the art winemaking facilities, Xige Estate has been hailed by the local government as “the most modern winery in China”. Xige is aiming to create the best Chinese wine, not just by quality but also by volume. The USD44,5 million winery is designed to produce 13 million bottles of wine annually.


The wine produced in the region is projected to grow to an annual production of 300 million bottles. Booming business has brought environmental concerns. For years, label release liners from these millions of wine bottles have either ended up in landfills or being incinerated.

Label liner waste is no longer a waste

As a modern vineyard, reducing waste and protecting the environment are serious matters for Xige Estate. They are aware that with such rapid growth in wine production in the region, the amount of label waste disposed of is substantial and wanted to find a solution and to lead the wine industry into a sustainable future.

A year ago, Mr. Liao Zusong, Deputy General Manager of Xige Estate, led his team to join the RafCycle program to turn their label liner waste into a resource. RafCycle program is an innovative recycling service that enables the recycling of label release liner. It supports the circular economy by giving a new life to label waste, instead of putting the waste into landfill. The waste is then used to manufacture new paper products


“By joining RafCycle program we wish to take the leadership in a circular economy, to set a good example for wineries in the Ningxia region, and to meet our sustainability commitments,” Zusong says.

The RafCycle service has brought more than 180 partners globally to join the RafCycle network. In Europe alone, nearly 10,000 tonnes of the liner is collected and recycled into graphic paper and paper liner annually.

Sustainability is a good business

For Xige Estate, choosing RafCycle is not only the right and responsible thing to do, but also a good business. By partnering with UPM Raflatac through its RafCycle service, Xige Estate has found a way to recycle it's label waste and brought direct savings to the costs. This simple action has helped the business to distinguish itself from the market and add value to its brand.

Most importantly, Xige Estate has set a great example for the wine industry in pursuing a better future for our planet, and one step forward to the sustainable circular economy. 




Xige Estate

Xige Estate, founded in 2017, is located in the Dove Mountain vineyards area in Qingtongxia at Helan Mountain’s east foothill of Ningxia. It is an innovative winery that seeks to blaze new trails for Chinese wines. Based on the advanced equipment and high requirements for crafts, Xige Estate is the first among Chinese wineries passing the world’s highest “BRC international quality certification” in October 2019. 

Visit their website 

RafCycle by UPM Raflatac

Depending on the region, landfilling and waste-to-energy are the typical solutions for label release liner waste. With RafCycle and the circular economy approach, landfill waste can be avoided. RafCycle takes self-adhesive label by-products and gives them a new life, therefore closing the loop.

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