Abstract: Apparatus for use in producing pellets including a pelletizer having an annular chamber partially defined by a pellet plate against which spring loaded knives are urged. Pellets produced by moving the knives relative to the plate to repeatedly cut plastics extruded through apertures in the plate are carried by a water stream out of the chamber. This stream enters the chamber via an inlet and performs one cycle round the chamber before exiting the chamber with the pellets via exit which is in the same plane as inlet. With this arrangement the axial extent of the pelletizer is reduced and the relatively short travel of the pellets promotes efficiency.