Abstract: A method and apparatus for salvaging conductive material from electrical power transformers. In the method, the transformer core is removed from the transformer casing and cut so as to separate laminations from windings. The windings with conductive materials and insulative paper are cut into relatively short segments. These segments are then subjected to an aqueous caustic solution with sparging for separating the conductive material from paper insulation and lacquer coatings thereon. The solution is treated with a coagulating or flocculating agent in a separate vessel to remove dissolved cellulose, processed to separate oil and PCBs therefrom and then returned to treat additional windings. The method is adapted to continuous processing.