Abstract: A method and apparatus for manufacturing nested polyethylene bags utilizes a web of polyethylene material having a tubular cross-sectional configuration which is fed through seaming means to form a seam transverse the web. Material transporting means transports the seamed web onto a generally planar mandrel. Severing means are provided for severing the web into individual bags and includes means for separating the walls of the web to accommodate the material transporting means grasping the web. After a predetermined number of individual bags are nested on the mandrel, the mandrel is indexed to a position adjacent a rolling means which rolls the batch of nested bags into a roll on a pair of mutually rotating wrapping rods. The wrapping rods are subsequently withdrawn from the roll and the roll is folded along a longitudinal axis by a ram which applies a force to the center of the roll.