Al and Mg machining chip blends were compacted by equal-channel angular pressing with back pressure. By varying the weight fraction of the constituent materials, temperature and processing route, as well as employing subsequent heat treatment, the microstructure and the mechanical properties of the compact were varied. The width of the interdiffusion zone and the formation of intermetallic phases near the interfaces between the two metals were studied by energy-dispersive X-ray spectroscopy and nanoindentation. It was shown that substantial improvement of mechanical properties, such as an increase of strength, strain-hardening capability and ductility, can be obtained. This is achieved by changing the processing parameters of equal-channel angular pressing and the annealing temperature, as well as by optimising the weight fraction of the constituent metals.