The Bluthsburg Steelworks is a steel mill located on a small island near the town of Bluthsburg. Pheobe and Ralph work here, running the site alongside other machines (including Kristabelle and Kristalynn the tower cranes). The site is made up of the main Steelworks building, where the steel itself is made, a pier with a large and extensive shunting yard, a slag dumping site where it is redug and recycled in the factory into other slag products, and the main shunting yard where engines enter and exit via Slagstone Bridge.
- In earlier plans for the series (mainly the cancelled pilot Night Run), the Steelworks would have been much more similar to the Foundry from Chuggington. When an attempt at producing a toyline was made, a suggestion for a factory or steelworks playset revitalized the idea of the location.
- A scrap model of the fanfiction character Timothy the Ghost Engine is seen buried near the slag pit; it was added as a jab at the overuse of the character in fan-produced works.