Abstract: Size reduction system for processing plastic articles is disclosed. The system includes granulating means operable to comminute articles delivered to it, an article feed means which serves to move articles in a generally vertical path from a loading point to the granulating means while simultaneously crushing each of the articles into a compacted form. The feed means includes projections which operate to pull the articles into the article feed means while concurrently puncturing those articles. The invention provides a simple and efficient means for processing articles into reduced size for reclaiming. The invention further provides a system which utilizes minimum operating space by virtue of the vertical orientation and integration of the feed system relative to the granulator and the functioning of the feed system to compact articles preliminary to entry into the granulator, thereby allowing for a granulator of reduced size.