Removal of metal chips are involved in several industrial production processes that machine from casted parts by various operations such as turning, milling and drilling. In addition to the fact that the chips represent a treat to the environment, their storage requires a large surface area. The objective of the project reported in this article is to improve the current layout of a machining workshop aimed to minimize material handling cost, increase operator safety, improve flexibility for operation, minimize the overall cost and utilize the available area. The research project focused on the compaction of metal chips briquette for simplicity of storage as well as handling and transportation of metal chips for a factory named Hibret Manufacturing and Machine Building Industry (HMMBI). The machining process on CNC lathe and milling machines in this company produces 1500 – 2000 kg/month chip. An effective design of hydraulic briquette press is carried out by using solid modelling tool and the hydraulic circuit is simulated. The result of the designed machine is observed to address the stated problems of the company.