The Factory (ファクトリー Fakutorī?) was the automated system of government that oversaw and controlled the Scrapyard. The term also refers to the 12 individual factories that were present in the Scrapyard, one in each district.

The Factory's role was to gather resources from the surface, process and refine them, and transport them to Tiphares via the massive tubes that connected each factory to the aerial city. It prioritised Tiphares' welfare above that of the people who lived in the Scrapyard, although it did provide a means of security against external threats and means of dealing with criminals through the bounty system. The Tipharean civil war shut down the Factory, which despite its exploitation of the Scarpyard's residents, had become the lynchpin of daily and economic life. Vector and Kaos were able to establish a degree of order out of the chaos, but the makeshift system that they put together was on the verge of collapse on the eve of the Tenth Zenith of Things Tournament Finals.