This paper presents a location model of manufacturing facilities and recycling facilities, considering the variability of the amount of used products. We analyzed the effect of the recycling technology improvement and the environmental regulation to the facility location. We found that when the variation of the used products amount is large, they become reluctant to locate a recycling facility. We also found that too strict environmental regulation leads to decrease production in domestic regions. We show that the reduction of the variation of used products amount is effective for the promotion of recycling.