A system and method for extruding composite material and the composite material therefrom. The composite material consists of a filler mixed with a binding agent. The composite material is extruded as billets with enhanced physical properties, such as color, texture, electrical conductivity and fire retardancy, and contains a dispersion pattern of the filler material. A system and method are also provided for drawing the composite material through a die and a composite material produced thereby. The drawn composite material exhibits a density reduction over the density of the starting material and enhanced physical properties. A particularly useful tongue and groove arrangement are also provided for joining adjacent strips of a composite material made according to the extrusion process.