A method of producing a core spun yarn is disclosed. A oriented polyester yarn is drawn through a primary heater and exposed to a cooling plate. The oriented polyester yarn is drawn through a friction twisting unit. A spandex core is drawn from a spandex bobbin to become associated with the oriented polyester yarn. Both the spandex core and the oriented polyester yarn are drawn through an intermingling jet, which texturizes the oriented polyester yarn using a hot air punching technique. The oriented polyester yarn is twisted around the spandex core using he intermingling jet and/or the friction twisting unit. The oriented polyester yarn and the spandex core are drawn through a NFR roller and then heated to form the core spun yarn.