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The phrase "a factory that" is correct and usable in written English.
It can be used to introduce a relative clause that provides more information about the factory being discussed.
Example: "We visited a factory that produces eco-friendly packaging materials."
Alternatives: "a plant that" or "a facility that".
Exact(58)
His father, Julius, operated a factory that made bathmats.
Working in a factory that made very mediocre fibreglass boats.
In Jamestown, N.Y., I visited a factory that makes metal exhaust hoods for laboratories.
She spent her career as a worker in a factory that made glass for industrial products.
Perhaps there is a factory that churns them out by the dozen.
It is now the site of a factory that makes the electric car trailblazer Tesla.
On weekends, he worked in a factory that made electrical panels.
He used the example of a factory that has trouble with tardy employees.
His father was on a production line, working in a factory that manufactured tires for airplanes.
A factory that mainly produces aircraft engines is located at Sunabeda in southwestern Odisha.
A factory that makes 1,000 cars a day with 50 workers is twice as productive as a factory that requires 100 workers to do the same job.
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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