Agglomeration of Plastics. 100% utilization of plastics. During the production and processing of thermoplastics, production waste occurs Plastic is Melted and Extruded into New Pellets. plastic pellets, are small lentil-sized pieces of plastic that are the building blocks for most plastic products. Chips is the multi layered plastic. Agglomeration machines are used for physically transform loose plastic material into densified chips suitable to be fed the hopper of an extruder.