The paper industry in the U.S. has made a public commitment to recover 40% of the country's waste paper for recycling by the end of 1995. This is an admirable goal, with a hidden disposal problem called sludge. Historical yields from de-inking processes are in the 80% range. How then does a 700-oven-dried-tonnes/day(odt/d)-newsprint de-inking mill process and dispose of some 140 odt/d of wet sludge? Convection type, thermal dewatering systems following mechanical thickening may hold the solution.