The Factory™ refers to an industry that revolves around making products from yukkuris. It appears almost exclusively in abuse works due to it's nature of killing yukkuris
"The Factory™" is a term every yukkuri fears. As a yukkuri's paste grows sweeter when it suffers, The Factory™ is infamous (among yukkuris) for the practice of torturing the yukkuris before killing them to be converted into products. Their infamy is to the point that a yukkuri, especially city-dwellers, are born with the inherent knowledge and fear of The Factory™
Exactly what products The Factory™ creates varies for each canon but in general they seem to produce yukkuri-related products. In particular, some canons show that the checker patterned biscuit that most yukkuri love is ironically made from tortured yukkuri themselves.
As the products they produce are made from yukkuris, The Factory™ also doubles as a yukkuri recycling plant. Any domesticated yukkuri that is no longer wanted for some reason (such as an unsold yu on a petshop or a pet yukkuri that turned into a shithead) should be sent to The Factory™ where they'll be put to good use. Unfortunately most pet owners are irresponsible and throws away unwanted pets instead of recycling them.
The Factory™ is also responsible for yukkuri exterminations which is the mass capturing or killing of yukkuris when the population of stray yukkuris have grown too much that they become a problem. This also benefits The Factory™ as they obtain an excess amount of raw material for their production lines.