After Georg Heinrich Macheleid received a privilege from his sovereign to operate a porcelain factory in Sitzendorf in 1760, the company was moved from his home in Sitzendorf to the village of Volkstedt near Rudolstadt in 1762. The manufactory was owned by a consortium in which Prince Johann Friedrich von Schwarzburg-Rudolstadt and various notables had shares alongside Macheleid. From 1767 to 1800, the merchant Christian Nonne was the successful tenant of the company. In the 19th century, the partners changed frequently. In the 18th century, the company produced not only simple everyday tableware but also magnificent pieces with rich sculptural designs and high-quality paintings for the princely court and court nobility.

The court painter and modeller Franz Kotta (1758-1821) played a major role in the interesting range of figures. Around 1860, production was switched to decorative porcelain. Porcelain connoisseurs particularly appreciated the models typical of the period, which were modeled in the 1920s. The manufactory's most renowned modellers were Arthur Storch (1870-1947), Hugo Meisel (1887-1966) and Gustav Oppel (1891-1978). Their models are still produced today. Today, Unterweißbacher Werkstätten für Porzellankunst GmbH, Porzellanmanufaktur Scheibe-Alsbach GmbH and Porzellanmanufactur Plaue GmbH also produce at the main factory, which has been part of the „Königlich privilegierte Porzellanfabrik Tettau“ since 1990.