Abstract: The present invention is concerned with a machine which manufactures substantially U-shaped handles for attachment to bags or bag making stock so as to provide a bag with substantially U-shaped handles attached. The substantially U-shaped handles are manufactured from paper strip which is divided longitudinally into further paper strips which are fed to separate former drums. Here, substantially U-shaped handles are formed and attached to bags, thereby producing handled bags. The substantially U-shaped handles are concurrently attached to either side of the preformed bags or bag making stock. The former drum makes use of a mechanical gripper means and a raised rail guide so as to hold the substantially U-shaped handles to the former drum and maintain the folded position of the legs of the handle once folded over. The preformed bags are supplied by a removable bag supply unit or alternatively a continuous feed of preformed bags or bag making stock.