Abstract: In the manufacture of bags with handles, an extruded plastics tube is extruded, folded inwardly by a first folding device (21) to form gusseted side portions (4) and flattened. A transverse heat seal is formed by a sealing device (22) and a cutting device (23) removes a central section of the tubing to form handle portions (10). The gusseted side portions (4) are folded in turn onto a medial tubing portion (3) by a second folding device (24) having arcuate folding ramps and a further transverse heat seal and a transverse perforation line are applied to the base of the bag.