Abstract: An apparatus for converting thermoplastic waste material into a commercial-grade granular material wherein the waste material is introduced into a chamber containing a rotating cutter which shreds and frictionally heats the thermoplastic material which is thereafter cooled by cooling water added to the material while the cutting operation continues. The cooling water or vapor is then withdrawn or exhausted from the container under negative pressure leaving the granular material dry. Also, solvents are removed from the material. The cutter blade may include baffle bars which provide frictional heating surfaces for heating the thermoplastic waste material.