Wednesday, 29 October 2014

Apple Glass Maker Makes Deal To Exit The Arizona Plant


GT
According to the reports published by New Hampshire-based GT Advanced Technologies, Merrimack on 23rd Oct 2014, the company is looking forward to invest and sell furnaces and want to exit from their glass-making business. On 6th Oct, GTAT had filed for Chapter 11 bankruptcy reorganization. According to the company they will be using the proceedings to refund $439 million Apple advanced GT to equip the Mesa, Arizona, plant. Currently this agreement needs approval from the bankruptcy court judge.

According to the recent reports, nearly 20000 furnaces are expected to be removed from an Arizona factory which were installed for making synthetic sapphire glass for Apple company. These furnaces will be sold under a deal that has been made between the company and the tech giant.

The company is currently preparing for producing large amounts of products that will be used in various Apple products. Currently Cupertino-based Apple has retained the rights to purchase the furnaces.

Last November, Apple company had announced that they will be purchasing a vacant 1.3 million-square-foot plant and will be contracting GT technologies for operation as well as making the glass which is currently being used on their iPhones camera lenses, and also on the home buttons.

With speculations surrounding the iPads and iPhone screens, the company was still unsure about the use of the massive source of the glass. On the other hand, GT technologies encountered issues to get the plant running successfully and Apple company has to release their latest iPhone 6 with their standard glass screen this September.

Apple is currently in the process of laying off nearly 124 employees of this plant which is expected to be completely closed by the end of 2014. They are also looking towards closing another small plant in Salem, Massachusetts.

Apple was quite surprised by the bankruptcy filing from GTAT. Apple released an official report on 23rd Oct 2014 stating that they have put forth a lot of energy and efforts towards their grand new sapphire manufacturing process along with GT Advanced Technologies but they are currently not ready for any production.

The company is planning to continue assessing the GTAT's progress pertaining to huge sapphire boule development and might consider other options for their facility. According to reports, Apple is quite concerned about the employees that will be laid off and hence they are looking to get new jobs for the GT employees and also want to remain committed towards Mesa city.

Initially, GT technologies were using the furnaces for making huge amounts of synthetic sapphire which was in turn used for making various components, but now they are concentrating to focusing on making the equipments that are used in the sapphire making process.

According to the Governor of Arizona, they are very happy with Apple’s decision to start a new plant in the City of Mesa as it indicates the efforts of Arizona is paying towards providing a pro-business climate. The state has been offering various incentives to Apple in the form of their existing facilities which was meant for manufacturing of Solar panel.

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