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A factory (previously manufactory) or manufacturing plant is an industrial site, usually consisting of buildings and machinery, or more commonly a complex having several buildings, where workers manufacture goods or operate machines processing one product into another.

The factory system is a method of manufacturing using machinery and division of labour. Because of the high capital cost of machinery and factory buildings, factories are typically owned by capitalists who employ the operative labour. Use of machinery with the division of labor reduced the required skill level of workers and also increased the output per worker.