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The Scrapyards are where engines, and other railway vehicles are sent to when their working lives are finished, and they are cut up and melted down. They have never been given a definite location in the stories, but needless to say their mere presence has scared many engines, especially the steam engines. Remains of old steam locomotives are lined up everywhere, mostly "recycled" locomotives used for certain scenes.
There is also Crocks Scrap Yard, a smaller yard on Edward's Branch Line where Reg has worked since Tale of the Brave, and another on the Other Railway where Oliver, Isabel, and Toad were saved from scrap.