The company Advanced Bearing LLC, which is a subsidiary of Miba AG, plans to carry out the outsourcing of the recycling process of chips produced during the manufacture of engine bearings at the site itself. The work is divided into two sections. The first part deals with the analysis of burn-off rates during the remelting of chips in a small-scale test and a selected verification of the most successful results in a large-scale test. The second part is an economic analysis of the implementation of two recycling options. The recycling options include the purchase of a new briquetting plant and the introduction of a melting furnace. On the basis of the small and large-scale tests carried out and the static investment calculations, the plants are compared with each other both from an economic and technical point of view. The aim of this paper is to give the reader a detailed overview of the possibilities for processing chips with minimal burn-up. Furthermore, an economic analysis is carried out with regard to the savings potential of internal recycling possibilities. The analysis is intended to determine the most economically attractive recycling option.