Abstract: A batch process for recycling plastic container scrap is disclosed comprising the steps of reducing a container bearing an externally disposed label to granules, agitating the granules in hot water to remove the label material portion from the plastic portion, separating the hot water and label portion from the plastic granules, filtering and recycling the hot water into the batch while separating the waste label residue, remixing and reagitating until substantially all of the waste label residue is removed. Subsequently, the plastic granules are floated over a weir and collected in a dewatering station with the hot wash water recycled into a hot water reservoir. A major portion of the wash water is removed from the granules in the dewatering station. Substantially all of the residual wash water is removed in a drying station.