Factory still dry i.e. peculiar! (10)
I believe the answer is:
distillery
'factory' is the definition.
(thesaurus)
'still dry i e peculiar' is the wordplay.
'peculiar' indicates anagramming the letters.
'still'+'dry'+'i'+'e'='stilldryie'
'stilldryie' anagrammed gives 'DISTILLERY'.
(Other definitions for distillery that I've seen before include "production facility" , "source for spirits" , "Source of drink" , "Place making spirits" , "Spirited establishment" .)