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How Metal Chip Processing Can Boost Profits

Boost Manufacturing Profits with Metal Chip Processing

Manufacturers in the metalworking industry always search for ways to enhance profitability and streamline operations. While most focus on production improvements, metal chip processing offers a lesser-known but impactful way to recover value, reduce waste, and promote sustainability. This blog will explore how efficient metal scrap processing can yield measurable ROI and share real-world success stories highlighting its benefits.

Metal Chip Processing Boosts Manufacturing Profitability

Uncovering the Hidden Value of Metal Chips

Metal chips are often treated as waste, but they hold untapped value that can be unlocked with proper processing. These chips have residual cutting fluids and valuable metals that can be recovered for reuse or resale.

Key Benefits of Processing Metal Chips:

  • Volume Reduction: Compressing chips can significantly lower storage and transportation costs.
  • Fluid Recovery: Extracting coolant and cutting fluids from chips reduces the need for fluid replacement and minimizes disposal expenses.
  • Optimized Scrap Value: Processed chips, especially when compressed into briquettes, fetch higher resale prices than loose chips.

Want to know more about these systems? Learn more about metal chip processing here.

 

How Metal Chip Processing Works

A streamlined chip processing system usually involves three main steps:

  1. Shredding: Bulky metal turnings are shredded into smaller, more manageable pieces for further processing.
  2. Wringing: Using a centrifuge, cutting fluids are separated from the chips, allowing coolants and oils to be reused.
  3. Briquetting: Chips are compressed into dense briquettes, drastically reducing their volume while increasing their scrap value.

Each step helps cut costs, recover valuable resources, and meet environmental regulations. Manufacturers can choose standalone equipment or integrated systems for seamless operations depending on their needs.

Discover more about shredders, wringers, and briquetters here.

Real-World Success Stories: The Impact of Metal Chip Processing

Case Study: CA Tool

CA Tool faced rising production volumes of steel and aluminum chips. To manage this, they implemented a processing system that included shredding, wringing, and briquetting. The results?

  • Recovered 60% of cutting fluids for reuse.
  • Achieved a 90% reduction in chip volume, slashing storage and transportation costs.
  • Saved over $60,000 yearly.

Read their entire case study here.

Case Study: Mathews, Inc.

Precision manufacturer Mathews, Inc. turned its waste management challenges into a profitable venture. It boosted its efficiency and profitability by recovering 80% of its cutting fluids and briquetting chips for resale.

Learn more about their journey here.

The Financial and Environmental Advantages

Cost Savings

  • Lower Hauling Fees: Smaller chip volumes mean fewer pickups and reduced transportation costs.
  • Fluid Recovery: Recycling cutting fluids lowers replacement expenses and reduces waste treatment costs.

Revenue Growth

  • Increased Scrap Value: Briquettes are easier to handle, transport, and sell at higher prices than loose chips.

Sustainability

  • Eco-Friendly Compliance: Efficient chip processing systems help meet ISO 14001 standards by reducing landfill waste and ensuring proper fluid handling.

Want tips on reducing fluid and waste? Check out these strategies.

Manufacturers Rely On PrabDesigning the Right Chip Processing System

When choosing a chip processing system, manufacturers should consider these factors:

  • Production Volume: High-output facilities might need automated solutions.
  • Material Type: Different metals may require unique processing techniques.
  • Space Limitations: Modular or compact designs can make the most of available space.
  • Integration: Connecting systems with existing machinery streamline operations and improve efficiency.

 

Metal chip processing is often overlooked but can be a game-changer for manufacturers aiming to boost profits and sustainability. By adopting efficient processing methods, companies can reduce waste, recover valuable resources, and turn a byproduct of machining into a lucrative revenue stream. Real-world examples prove the significant financial and environmental impact of these systems.

Looking to get started? Learn more about PRAB’s Metal Chip Processing Solutions.