Powder mixtures of cast iron (FC30) machined chip and 3〜10mass% graphite(Gr.) powder were mechanically alloyed (MA) for 18ks. The obtained MA powders were compacted at 873K under 15MPa by hot press. Bending strength of the compacts became higher after further sintering at 1173K. Structure of the sintered MA alloy consisted of fine ferrite and graphite with nano-order. The MA powders were bonded on cast iron plate simultaneously at the compaction with enough bonding strength. Shot blasting improved the hardness of the bonded MA alloy surface.