ABSTRACT The renewal of urban industrial heritage brings many benefits, meanwhile facing challenges, and there is a lack of in-depth and specific case study analysis. Based on spatial production theory, this paper takes an iconic project as an example to explore its construction process and reveal the spatial and social changes it triggers. This case study investigates the changes in physical and social spaces resulting from the shift in the subjects of spatial production. By analyzing document data, spatial data, and field data, the following key findings and conclusions are obtained: 1) Capital led the regeneration process, transformed decaying factory buildings into consumer space, and activated the economic vitality of the area. 2) The construction of the physical space changed the spatial layout, structure and function that attracted the creative community and young visitors, changing daily lives of the space users. 3) However, the neglect of industrial culture and participation of nearby residents are obvious challenges. The results indicate that using spatial production as a theoretical analysis framework helps us fully understand the challenges faced in the renewal of urban industrial heritage projects. This study can provide a reference for small-scale urban heritage renewal projects, facilitating accurate decision-making.