The Sprunk Factory is located on Argus St. in Tudor, Alderney. Although the factory in accessible, it is abandoned and run-down inside. It's first major role is in the mission Trespass, when Phil Bell takes Niko to the factory to take out Charles "Chubby Charlie" Matteo from threatening to rad out The Pegorinos to The Commission that it was them who stole the Cocaine from the Russians.
Contrary to popular belief, the abandoned Sprunk factory is not a haunted area. It was previously thought to be haunted, because you could hear a mysterious voice threatening you after discharging a weapon. In fact, the building is within a short distance of the Strip Club Honkers, and firing your weapon inside the factory will result in an unseen Strip Club Bouncer warning you to leave the area.