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The phrase 'establish a factory' is correct and usable in written English.
You can use it when you are writing about a company or person setting up a physical site where goods are manufactured or services are provided. For example, "The company plans to establish a factory in Shanghai to increase its production capacity."
Exact(13)
Nor has his company shelved its plans to establish a factory in Israel.
It will establish a factory adjacent to Artemis's headquarters in Loanhead, Midlothian.
The Berthollet and Chaptal sons later joined forces to establish a factory in southern France to manufacture soda ash (sodium carbonate), using the Leblanc process.
Taking advantage of European Union programs to help small businesses, they borrowed 2 million French francs ($409,000) in 1988 to establish a factory.
During the second trial its performance was so good that it was not equaled by other chronometers at Greenwich for nearly a century, but his son's attempts to establish a factory to produce his father's timekeepers ended in failure.
Wanting to expand and consolidate its already strong electric presence in the world's biggest EV-centric country, Tesla has just announced it is in discussions to establish a factory in Shanghai.
Similar(47)
He establishes a factory to produce and distribute these mechanisms worldwide.
At Ravensbrück, the Siemens corporation established a factory where six hundred women worked twelve-hour shifts building electrical components.
Otis Elevator dates to 1853 when the American inventor Elisha Graves Otis established a factory to manufacture his new "safety hoist".
Construction of aircraft in postwar Germany was forbidden by the Allies, so Dornier established a factory in Spain.
The demand for such cable soon became so great that he established a factory to manufacture it in Trenton, New Jersey.
More suggestions(15)
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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