The plant provided the northern Iraq-based Daesh terrorists with mortar shells and missiles to carry out attacks on the army, the people's militia and civilians.
An exclusive video published by Sputnik shows Iraqi law enforcement officials and servicemen carrying out a search of the weapons factory.
The plant operated inside a former residential house which was abandoned by a family who fled the province of Nineveh after Daesh captured Mosul in 2014.
Right now, Iraqi police and sappers are exploring the liberated areas of Hammam al-Alil for the possible detection of more weapons factories and warehouses, as well as mined objects.
On Monday, the Iraqi army announced that its troops had discovered a mass grave with 100 beheaded bodies in Hammam Al-Alil.
More than 30,000 Iraqi and 4,000 Kurdish fighters are taking part in the offensive on Mosul, backed by about 5,000 US troops and supported by US-led coalition airstrikes. Mosul has been occupied by Daesh since 2014.
The offensive has already resulted in the liberation of large territories and prompted many terrorists to flee Iraq.