Many machining manufacturers gain a competitive advantage by melting their chips in-house, instead of sending them to a secondary smelter for conversion. The savings are substantial, and include:

• No transport costs
• Minimized handling costs
• Paying to melt the metal only once—when ready for use—instead of at the Secondary smelter, and then again upon return

In-house conversion also offers intangible but very real advantages, including:

• Complete control over the valued commodity of chips—you know what you have and where it is
• Reduction in environmental liability—you know how your chips are being stored and handled
• Accountability of chip quantities—the smelter’s “amount received” may not always match the amount sent.

So, while the advantages of in-house conversion are many, there are concerns. A primary one is safety.

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