Abstract: The aim of this work is to carry out the experimental analysis of cold compaction of aluminium alloy on universal testing machine with various pressure forces at room temperature. This is the process for recycling machining chips of aluminium alloy in to direct billets or ingots in a cylindrical form. In this method we can eliminate melting, casting and solidification process. The scope of this project is to carry out the work with the various process parameters such as temperature, chip size, material type and axial force, densities, relative densities etc. This process is suitable for consolidations and producing cylindrical billets / ingots at cold compaction and it is used in extrusion process for producing wire or rod. The objective of this work is to produce billets / ingots in a closed die and punch in the form of cylindrical in diameter, the billets are tested in metallurgical and mechanical point of view.