An apparatus for making cellulose insulation including auger feed and metering devices for chemical additives for discharging a measured quantity of such additives into an initial grinder which receives raw paper from a supply source so that an accurately measured proportion of additive will be effectively combined with the paper in the initial grinder. Twin augers convey the combined paper product and chemical additive to a final grinder and an auger conveyor conveys the product to a bagger hopper with twin augers then conveying the product to a bagging station. The use of auger-type conveying and metering devices enables greater efficiency of combining the chemical additive, which is a powder-type material, with the paper and the manufacturing area has less dust particles and this technique substantially eliminates air pollution caused by present processes in which the chemical additives are applied through a high volume fan which creates a major problem of disposing of the large volume of air that has been created. In present day techniques, the large volume of air results in substantial air pollution since the air when it is discharged back into the atmosphere has dust particles or chemical additive particles entrained therein and it is necessary to utilize separating tanks to separate the air from the product prior to the product being bagged.