Sludge is the industrial waste generated during the production process of the municipal sewage processing. Because sludge has many disadvantages such as high moisture content, high viscosity, high water holding capacity, and low calorific value. It is difficult to achieve industrial utilization. Dingli Company operated a series of technical researches on currently market situation of sludge treatment and the characteristics of sludge in various regions. Dingli Company concentrating created a new generation of sludge rotary drum drying system, drying product moisture can be reduced less than 25%, it total achieved the standard of sludge landfill and further incineration processing conditions. The technology of equipment gets absolutely mature enough, also it has stable capacity of operation and very convenient to operate and maintain.