By understanding the effects of the physical properties of individual input materials (e.g., binding system) on the physical and thermal properties of a composite material, the latter can be engineered in advance according to the desired properties and application. Often, a need to replace a specific component in a composite material arises, due to various reasons such as high raw material prices, product price reduction, environmental issues, improvement of properties, and others. In this study, we focused on the substitution of a phenolic novolac resin binding system and the reduction of compounding process temperature in combination with material throughput and screw speed variation of a phenolic-novolac-resin-based composite material, manufactured by kneading process using a co-kneader single screw extruder. Modifications were carried out in the interest of reducing production process cost and positive environmental effect due to reduction of energy consumption in the compounding process. We achieved great success in improvement of mechanical properties with all four substituted phenolic molding compounds (PMCs), while the decrease in thermal stability was the lowest for PMCs prepared at higher screw speeds and material throughput. The results indicated that higher screw speeds produce the best combination of mechanical and thermal properties of PMCs.