He has manufactured items in the shape of animals; can he melt them down and make use of them?

It is not permissible to manufacture figures and sculptures in the form of animate beings, such as people, birds and animals, because of the stern warning that has been issued against that, such as the words of the Prophet (peace and blessings of Allaah be upon him): “The makers of these images will be punished in the Day of Resurrection and it will be said to them: Give life to that which you have created.” Narrated by al-Bukhaari (7557) and Muslim (210).  

And he (peace and blessings of Allaah be upon him) said: “The people who will be most severely punished on the Day of Resurrection will be the image-makers.” Narrated by al-Bukhaari (5950) and Muslim (2109). 

Whoever has any sculptures which have any inherent value, such as if they are made of copper, bronze or marble, should not destroy them, rather he should melt them down and make use of them. 

In Sunan al-Tirmidhi (2806), Abu Dawood (4158) and elsewhere it is narrated that Abu Hurayrah (may Allaah be pleased with him) said: The Messenger of Allaah (peace and blessings of Allaah be upon him) said: “Jibreel came to me and said: I was going to come to you last night, and nothing prevented me from entering the house where you were except the fact that at the door of the house there was a statue of a man. In the house there was a curtain on which there were images, and there was a dog in the house. 

So order that the head of the statue that is at the door be cut off, so that it will become like a tree, and order that the curtain be cut up and made into two pillows that will be thrown on the floor and stepped over, and order that the dog be taken out.  

The Messenger of Allaah (peace and blessings of Allaah be upon him) did that. That dog was a puppy belonging to al-Hasan or al-Husayn, that was beneath a bed, and he ordered that it be taken out. Classed as saheeh by al-Albaani. 

It says in Sharh al-Sunnah: This indicates that if the form of an image is changed by cutting off its head or dismantling its parts so that nothing is left of it except a few pieces and an incomplete image, there is nothing wrong with it, and if it is cut into pieces it is permissible to use it. End quote from al-Mubaarakfoori in al-Tuhfah. 

It says in al-Mawsoo’ah al-Fiqhiyyah (12/125): That which is made with haraam images, if any use can be made of it, then the images should be distorted in such a way that it is no longer haraam, and it does not need to be destroyed altogether. End quote. 

And Allaah knows best.