While chasing an ax-throwing combatant, Katara and Avatar Aang ended up at this factory, where they were met with a barrage of even more ax attacks. Once inside, Aang and Katara learned that Sneers had been launching the axes at them. He revealed that, because of his relationship with Kori Morishita, he had come to think of Yu Dao as neither Earth Kingdom nor Fire Nation. Kori appeared and further explained their views on the town of Yu Dao. After hearing their opinions, Aang warned them about Earth King Kuei's approaching army.