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The phrase "a factory of" is correct and usable in written English.
It can be used to describe a place or entity that produces or generates a particular type of output, often in a metaphorical sense.
Example: "The university has become a factory of innovation, producing groundbreaking research and ideas."
Alternatives: "a hub of" or "a center for".
Exact(60)
The place was a factory of tack.
The pathology block was a factory of human skin products".
A Factory of Cunning, by Philippa Stockley (Harcourt).
"Televisa is a factory of dreams," Mr. Azcárraga said recently.
"It's basically a factory of comedy," Mazer recalled.
It will explore French historical consciousness as a factory of multiple, changing identities.
His dream: to one day run a factory of his own.
Koolhaas argued that New York was a "collective experiment" in a "factory of man-made experience".
The architect Renzo Piano called his building a "factory of culture".
It's basically a factory of clinical laboratory testing, a factory working to perfection".
Everywhere's a party with me – I'm a factory of good times.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com