The unpacker splits things up into their smaller components. It will take upcycled items like powder kegs, drums, canisters, and pallets and reduces them to sacks, beakers, cartridges, and cases (respectively). Further, it will take sacks, beakers, cartridges, and cases and reduce them to bags, vials, flasks, and syringes (respectively).
This is useful for certain recipes that don't use scaled up items.
Players can manually put items in the top left slots and retrieve the output in the top right slot. Alternatively, players can put a chest on top of it to feed items in and a chest below to collect the output automatically.