It is necessary that End-of-life Vehicle (ELV) should be recycled from the point of view of environmental preservation and resource recycling. This paper deals with two issues. The first one is the basic functional construction and plant layout of the ELV dismantling system that can maximize the reusability of parts and the recyclability of materials. The second issue is the development of a simulation model which can be used to estimate the performance of the layout design. The simulator has been interfaced with an interactive layout design system, and used to effectively determine an optimal layout design of the ELV dismantling system.