Sludge by-products from the metalworking industry have a high potential for recycling. Prolonged grinding processes can generate large amounts of highly valuable, alloy-rich sludge; consisting of metal powder and cooling lubricants. Inside our VacuDry® system, the thermal separation of the liquids (hydrocarbons, eventually water) and solids (metal powder) takes place in an oxygen free atmosphere. This absence of oxygen ultimately eliminates material degradation by oxidation, and self-ignition or explosion risks. Operation under a low vacuum ensures the possibility to recover the cooling lubricants for later reuse. After the thermal treatment, for appropriate handling in the melting process, the metal powder is pressed into briquettes. With the econ VacuDry® technology, 100% recycling of all ingredients is possible.