Chop Shop

The Chop Shop in Robots is this, both in appearance and how it's seen in-universe as it is a place where parts of outmoded robots are taken to be melted down and turned into something else. The owner of the place Madame Gasket even looks like a female robot Satan and the Tom Waits song Underground perfectly captures the unsettling nature of the place as well.

Example of:
Nightmarish Factory