The effectiveness of kneaders in the dispersion process of metal powder pigments has been investigated. Measurements of the aggregate density of the pigments reclaimed from the lacquers show that the magnetic and mechanical deficiencies of metal powder tapes prepared by conventional dispersion processes, e.g. pearl milling, are due to a relatively low aggregate density of the MP pigment. It was found that the aggregate density could be increased very much by introducing a kneader step in the dispersion process.