Foxconn Electronics has stepped up its investments in the second-hand smartphone market as part of its efforts to promote environmental protection globally, according to industry sources.

A subsidiary of the Foxconn Group has recently acquired a 20% stake of Bamboo Distribution, a UK-based mobile phone recovery, refurbishment and distribution specialist.

The investment will allow Foxconn to step into the mobile phone recovery and recycling market in Europe and to open new revenue channels, said the sources.

The Foxconn Group began to participate in the second-hand market in September 2014 when FIH Mobile, a smartphone ODM of the group, acquired a 30% stake in CExchange, a US-based provider of consumer electronics trade-in, buy-back and recycling services.

In China, Foxconn also set up a subsidiary in mid-2015 to engage in trade-in business for smartphones, leveraging the group's e-commerce platforms established in China. Through the online platforms, the subsidiary offers recovery, examination, recycling and reselling services for smartphones.

Foxconn reportedly has also reached an agreement with Japan-based Brightstar, a subsidiary of Softbank, to jointly develop handset recovery and distribution businesses.

Foxconn is optimistic about the handset recycling business as it can optimize its smartphone manufacturing capability and the supply of various parts and components, said the sources.