Toyota Tsusho Corp. said Wednesday it will launch a used automobile scrapping and recycling business in China through investment in a local firm.

　　The Japanese trader acquired a 32 percent stake in the Beijing-based firm in December, and Showa-Metal Co., a Japanese automobile scrapping and recycling firm, 8 percent.

　　The rest is owned by Beijing Xianglong Borui Auto Service (Group) Co., a Chinese auto service company.

　　The Chinese auto scrapping and recycling firm will open an advanced scrapping factory with a monthly capacity of some 1,000 units late this month. It aims to achieve annual sales of some ¥1.725 billion in five years. The lack of advanced scrapping and recycling technologies is becoming an environmental issue in China, where many old cars that were not built under current emission regulations have to be retired. Toyota Tsusho plans to explore investment in recycling firms in other parts of China to further expand the business.