Seiko Epson Corp. said Tuesday that it is preparing to start selling what will be the world's first machines for office use that can recycle used paper into new white sheets without use of water.

The PaperLab, scheduled to go on sale next year, uses a technology that first strips the papers into fibers. The machine doesn't use any water, relying on special adhesives that bind the fibers and calibrate the new sheets' whiteness, according to the company. The process is different from regular shredding and can remove colors from...